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HF 4713

Income tax subtraction for medals and prizes provided.

2025-2026 Regular Session Introduced by Marj Fogelman

MN HF 4713 proposes a subtraction from taxable income for the value of medals and prizes received by individuals.

Introduction and first reading, referred to Taxes
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Bill Summary · HF 4713

Summary of HF 4713 (2025-2026) – Minnesota

Overview

HF 4713 is a Minnesota House bill introduced in the 2025-2026 session and referred to the Taxes committee. The bill proposes an income tax subtraction for medals and prizes provided to individuals. The primary aim is to exempt certain medals and prizes from taxable income, reducing the tax burden on recipients who receive such honors or awards.

  • Session: 2025-2026
  • Jurisdiction: Minnesota
  • Title: Income tax subtraction for medals and prizes provided
  • Introduction Date: 2026-03-25 (first reading, introduced; referred to Taxes)
  • Sponsor: Co-sponsor Marj Fogelman

Purpose and Intent

  • To allow taxpayers to subtract the value of medals and prizes provided to them from Minnesota taxable income.
  • The policy target is to align tax treatment more closely with Federal tax treatment in similar contexts or to encourage achievement in areas that earn medals or prizes (e.g., sports, academics, service, or professional recognition).

Key Provisions (as proposed)

  • Income Tax Subtraction: Creates a subtraction ( deduction from taxable income) for the value of medals and prizes received by a taxpayer.
  • Scope of Subtraction:
    • Applies to medals and prizes provided to individuals (likely recipients) rather than prizes owned by a business or organization.
    • The provision would specify eligible types of medals and prizes (e.g., Olympic or other official medals, championship trophies, academic or professional prizes) and the method for determining their value for subtraction.
  • Value and Documentation:
    • The bill would likely define how the value is determined (e.g., fair market value or face value) and what documentation the taxpayer must retain to claim the subtraction.
  • Limitations and Conditions:
    • Potential limitations may include caps on the subtraction, affirmation that the subtraction does not apply to amounts already excluded or taxed otherwise, or requirements that the medal/prize be provided by a recognized organization or official body.
  • Interaction with Other Provisions:
    • The subtraction would operate within the Minnesota individual income tax framework and would interact with existing standard and itemized deduction rules.

Who Would Be Affected

  • Minnesota individual taxpayers who have received medals or prizes as recognition.
  • Recipients of such honors who would benefit from a reduction in taxable income.
  • Potentially athletes, scholars, veterans, or professionals who receive medals or prizes from recognized organizations.

Procedural and Timeline Considerations

  • Introductory Step: Introduction and first reading completed on 2026-03-25, with referral to the Taxes committee.
  • Next Steps (typical):
    • Research and analysis by the Taxes committee.
    • Possible committee hearings, amendment process, and votes.
    • If advanced, floor consideration by the House, then potential crossover to the Senate and eventual enactment.
  • Effective Date: The bill as introduced does not specify an effective date in the provided information; typical tax provisions include a future effective date (e.g., tax year beginning after enactment) or a phased implementation. The final text would provide the exact effective date.

Notes

  • The summary above is based on the bill title and action history provided. The actual statutory language would specify eligibility criteria, value determinations, documentation requirements, caps, and interaction with current Minnesota tax law.
  • Readers interested in eligibility details, maximum subtraction amounts, and filing requirements should consult the full bill text and any fiscal notes or committee amendments as they become available.

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

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