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HF 741

Income tax subtraction established for volunteer fire and rescue workers.

2025-2026 Regular Session Introduced by Ben Bakeberg and 6 co-sponsors

HF 741 creates a state income tax subtraction for eligible volunteer fire and rescue workers, reducing their taxable income and state tax liability.

Author added Dotseth
#fireandfirefighters #taxation-income
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WeVote Research Nonpartisan
Bill Summary · HF 741

Summary of HF 741 (2025-2026) – Income Tax Subtraction Established for Volunteer Fire and Rescue Workers

Purpose and Intent

HF 741 proposes establishing a state income tax subtraction (a tax benefit subtracted from taxable income) for individuals who serve as volunteer fire and rescue workers. The bill aims to provide financial recognition and support to volunteers who participate in fire and emergency rescue services, potentially reducing their state income tax liability.

Key Provisions and Changes

  • Tax Benefit Type: Introduces an income tax subtraction (not a credit) for eligible volunteer firefighters and rescue workers. This means the amount claimed would reduce taxable income, thereby lowering the individual’s state income tax liability.

  • Eligibility:

    • Applies to individuals who serve as volunteer fire or rescue personnel.
    • Specific definitions of “volunteer” status, and what constitutes “fire and rescue workers,” would be set out in the bill’s text (e.g., minimum service requirements, membership in a recognized volunteer fire department or rescue squad, and ongoing active status). The summary does not specify all criteria; the bill would spell these out.

  • Subtraction Amount:

    • The bill would specify a dollar amount to subtract from taxable income for each qualifying individual. The exact figure (e.g., annual maximum subtraction) would be defined in the enacted language. The summary does not provide the precise amount.

  • Limitations and Alignments:

    • The subtraction would likely be subject to standard Minnesota tax rules for subtractive deductions (e.g., limitations, phase-outs, or tie-ins to other income limits), as detailed in the bill.
    • Interaction with other tax benefits (e.g., other deductions or credits) would be governed by state tax law provisions.

  • Administration:

    • The Department of Revenue would administer the subtraction, including qualification verification and processing on individual tax returns.
    • Required documentation or certification (e.g., proof of volunteer service) would be specified to claim the subtraction.

Who Would Be Affected

  • Primary Beneficiaries: Minnesota residents who volunteer as fire and rescue workers and meet the bill’s defined criteria.
  • Taxpayers Impacted: The subtraction would reduce taxable income for eligible volunteers, lowering their state income tax liability.
  • Municipal/Volunteer Organizations: Potentially increased incentive for individuals to volunteer; may affect volunteer retention and recruitment for local fire and rescue departments.

Procedural and Timeline Aspects

  • Authoring and Introduction:
    • Introduced and assigned to the House Taxes committee in February 2025.
    • First reading and referral occurred on February 13, 2025.
  • Sponsor Roll-Call:
    • Primary author and multiple co-sponsors listed, indicating broad support from both Republican and potentially cross-party members (as reflected in the listed co-sponsors: Dotseth, Zeleznikar, Bakeberg, Dippel, McDonald, Olson, Skraba, etc.).
  • Status:
    • The action history shows initial steps taken in February 2025 with an introduction and referral; no information provided about further committee action or floor debate within the provided record.

Notes for Readers

  • This summary reflects the bill’s general aim to create an income tax subtraction for volunteer fire and rescue workers and notes that exact details (subtraction amount, eligibility criteria, and interaction with other tax provisions) will be defined in the bill’s full text.
  • For a complete understanding, one should review the enacted language of HF 741, including any amendments adopted during committee process, and any fiscal notes or impact analyses released by the Minnesota House or Department of Revenue.

If you’d like, I can tailor this summary to emphasize fiscal impact estimates (once a fiscal note is available) or compare HF 741 to existing Minnesota tax provisions related to volunteer services.

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

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