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SF860 (Legislative Session 94 (2025-2026))

Certain discharges of indebtedness subtraction provision and certain discharges of indebtedness from income for purposes of the property tax refund and the renter's income tax credit exclusion provision

Related bill: HF385

AI Generated Summary

This bill proposes a modification to the income tax law in Minnesota. It aims to allow individuals to subtract certain amounts of forgiven debt, specifically coerced debt, from their taxable income. Additionally, this subtraction also applies when calculating eligibility for property tax refunds and renters' income tax credits. If passed, this could reduce the amount of taxable income for individuals who have had debt forgiven under specific conditions, potentially lowering their overall taxes and altering their eligibility for certain tax benefits.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 02, 2025SenateFloorActionIntroduction and first reading
February 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision addressing coerced debt is added as a subtraction for income calculation."
      ],
      "removed": [],
      "summary": "This bill modifies taxation related to individual income by amending section 290.0132 to add a new subdivision.",
      "modified": []
    },
    "citation": "290.0132"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references section 290.0693, involving changes to income tax credits.",
      "modified": []
    },
    "citation": "290.0693"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references section 290A.03 to relate to renters income tax credit adjustments.",
      "modified": []
    },
    "citation": "290A.03"
  }
]

Sponsors