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SF4902

Firefighter pension income taxation subtraction establishment
Legislative Session 94 (2025-2026)

Related bill: HF4574

AI Generated Summary

Purpose

This bill creates a new tax subtraction for firefighter pension income under Minnesota’s individual income tax. It adds a new subdivision (Subd. 40) to Minnesota Statutes, section 290.0132, to allow taxpayers who receive certain firefighter pension payments to subtract that income from their taxable income.

Main Provisions

  • Adds Subd. 40 Firefighter pensions to Minnesota Statutes 2024 section 290.0132.
  • Establishes a subtraction from individual income equal to the amount of firefighter pension income.
  • Defines “firefighter pension income” as annuity income or a lump-sum payment from a public retirement plan that is based on service as a firefighter.
  • Ties this definition to service as a firefighter as defined in section 299N.01 subdivision 3.

What the bill seeks to accomplish

  • Provides tax relief by reducing taxable income for individuals who receive firefighter pension income.
  • Clarifies exactly what counts as firefighter pension income for the subtraction (annuity income or lump-sum payments from a public retirement plan tied to firefighting service).

Significant changes to existing law

  • Creates a new subtraction amount specifically for firefighter pension income under the state’s individual income tax.
  • Expands or specifies the categories of retirement income that qualify for tax subtraction by referencing “firefighter” service and the defined term “firefighter pension income”.

Definitions and references

  • Subdivision added: Subd. 40 Firefighter pensions.
  • Key terms from the bill include: firefighter pension income, annuity income, lumpsum payment, public retirement plan, service as a firefighter.
  • Related statutory references: Minnesota Statutes 2024 section 290.0132, and section 299N.01 subdivision 3.

Relevant Terms

firefighter pension income, subtraction, annuity income, lumpsum payment, public retirement plan, service as a firefighter, Minnesota Statutes 2024 section 290.0132, Subd. 40, section 299N.01 subdivision 3

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2026SenateActionIntroduction and first reading
March 26, 2026SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds Subd.40 Firefighter pensions to § 290.0132, establishing an individual income tax subtraction for firefighter pension income (annuity or lump-sum) from a public retirement plan."
      ],
      "removed": [],
      "summary": "Adds Subdivision 40 to Minnesota Statutes § 290.0132 to create a subtraction for firefighter pension income. The subtraction applies to income defined as annuity income or a lump-sum payment from a public retirement plan based on service as a firefighter.",
      "modified": [
        "The subtraction is defined by referencing firefighter service as defined in § 299N.01, subd. 3."
      ]
    },
    "citation": "290.0132",
    "subdivision": "subd.40"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes § 299N.01, subd. 3 to define 'firefighter' for purposes of the new § 290.0132 Subd.40 subtraction. No change to § 299N.01 itself.",
      "modified": [
        "Used only for definitional purposes in the new subtraction; § 299N.01 itself is not amended."
      ]
    },
    "citation": "299N.01",
    "subdivision": "subd.3"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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