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SF 938

General subtraction amount increase

2025-2026 Regular Session Introduced by Cal Bahr

SF 938 increases Minnesota's general subtraction amount, reducing taxable income and state tax for eligible filers; may affect estate tax provisions.

Referred to Taxes
#revenuedepartment #taxation #taxation-estate
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WeVote Research Nonpartisan
Bill Summary · SF 938

SF 938 — General Subtraction Amount Increase

Overview

SF 938 is a Minnesota Senate bill introduced on February 3, 2025, titled “General subtraction amount increase.” The measure is currently referred to the Senate Committee on Taxes. The companion House bill is HF 147. The bill falls under revenue/taxation and estate-related tax topics.

Purpose

  • The core aim of SF 938 is to increase the general subtraction amount used to compute Minnesota taxable income. A larger subtraction amount would reduce the amount of income subject to Minnesota income tax for eligible taxpayers.
  • While the specific dollar amount or indexing provisions are not provided in the summary, the general subtraction is a key component of Minnesota’s tax calculation that affects most individual filers and, depending on design, may interact with estate or estate-related tax provisions.

Key Provisions (as described)

  • Increase the general subtraction amount from federal adjusted gross income when computing Minnesota taxable income.
  • The bill’s text would specify the new subtraction amount (or formula), any inflation-indexing, phase‑in/phase‑out rules, and applicability to different filing statuses or years. This information is not included in the summary you provided.
  • Potential linkage to estate tax considerations is indicated by the bill’s subject classification, though exact provisions affecting estates are not detailed here.

Who Would Be Affected

  • Minnesota individual and possibly family filers who compute Minnesota taxable income using the general subtraction amount.
  • Depending on the bill’s specifics, taxpayers with larger deductions or particular filing statuses could see a larger reduction in taxable income.
  • If estate-related provisions are included, estates and their beneficiaries or fiduciaries could experience related impacts.

Procedural and Timeline Aspects

  • Introduction date: February 3, 2025.
  • First reading and referral: Introduction and first reading on February 3, 2025, with referral to the Senate Taxes committee for consideration.
  • Status: Referred to Taxes (no floor action documented in the provided summary).
  • Next steps: The bill would proceed through committee discussions, potential amendments, and, if advanced, floor votes in the Senate. The companion HF 147 in the House would progress through its own committee and floor process.

Related Legislation

  • HF 147 is the companion bill in the House, presumably pursuing the same general subtraction amount increase.

Notes for Readers

  • The summary provided does not include the exact proposed subtraction amount, indexing details, or year-by-year applicability. For a complete understanding, review the full text of SF 938 and HF 147 when available, including any fiscal notes, to assess the expected revenue impact and how the change would interact with estate-related tax provisions.

If you’d like, I can incorporate any available bill text or fiscal notes to produce a more detailed, dollar-specific summary.

Compiled from official sources — confirm details with the bill’s official record.

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