SF4903

Purpose

This bill would create a tax subtraction for volunteer firefighter pension income, reducing Minnesota taxable income for eligible individuals.

Main provisions

• Adds a new subdivision (Subd. 40) to Minnesota Statutes 2024 section 290.0132, titled “Volunteer firefighter pensions.”
• The subtraction: The amount of volunteer firefighter pension income is subtracted from Minnesota taxable income.
• Who counts as a “volunteer firefighter” for this purpose:
  • a volunteer firefighter as defined in section 424A.001 subdivision 10
  • a paid on-call firefighter as defined in section 424A.001 subdivision 10a
  • or a volunteer firefighter as defined in section 353G.01 subdivision 15
• What counts as “volunteer firefighter pension income”: annuity income or a lump-sum payment from a public retirement plan based on service as a volunteer firefighter.

Significance and scope

• Establishes a tax subtraction specifically for income from volunteer firefighter pensions.
• Broadens eligibility by including paid on-call firefighters in the definition of who qualifies.
• Clarifies that pension income must come from a public retirement plan and be based on service as a volunteer firefighter.

Effective date

• The text provided does not specify when the subtraction would take effect.

Note on terminology

• Key terms to understand: volunteer firefighter, paid on-call firefighter, volunteer firefighter pension income, subtraction, annuity income, lump-sum payment, public retirement plan.

Relevant Terms - volunteer firefighter - paid on-call firefighter - volunteer firefighter pension income - subtraction - Minnesota Statutes 2024 section 290.0132 - Subd. 40 - annuity income - lump-sum payment - public retirement plan - section 424A.001 subdivision 10 - section 424A.001 subdivision 10a - section 353G.01 subdivision 15