Bill
HF 2268
The bill would subtract all or some income from eligible retirement plans from Minnesota taxable income.
HF 2268 — Individual income tax; subtraction of income from certain retirement plans provided
Overview
HF 2268 proposes a subtraction from Minnesota individual taxable income for income derived from certain retirement plans. The bill is at an early stage in the 94th Legislature (2025-2026), having been introduced on March 12, 2025, and referred to the House Taxes Committee. A companion bill exists in the Senate as SF 2012.
Purpose and intent
- The core aim is to provide tax relief by excluding a portion (or possibly the full amount) of retirement-plan income from taxable income. The bill would modify the Minnesota individual income tax calculation to incorporate this subtraction for eligible retirement-plan income.
- The exact scope, definitions, and limits will be defined in the bill’s text and any related fiscal note.
Key provisions (as far as information available)
- Eligibility: The bill would define which retirement plan income qualifies as eligible for the subtraction. Specific plan types and criteria are not provided in the available summary.
- Subtraction amount: The mechanism—whether the subtraction is partial, full, or subject to caps/phased-in limits—has not been disclosed in the provided information.
- Limitations and interactions: Potential interactions with other tax provisions (e.g., standard deduction, other retirement-related deductions or exclusions) and any sunset or renewal provisions would be specified in the enacted bill.
- Effective date: The summary does not specify when any subtraction would take effect; that detail would appear in the bill text.
Who would be affected
- Taxpayers with income from eligible retirement plans who file Minnesota individual income tax returns.
- Depending on definitions and caps, the measure could primarily benefit retirees receiving distributions from retirement accounts (e.g., defined contribution/defined benefit plans) and possibly reduce state income tax liability for those households.
Procedural and timeline aspects
- Status: Introduction and first reading in the Minnesota House; referred to Taxes.
- Next steps: Committee consideration, potential amendments, and floor votes in the House and Senate. If enacted, it would require assent from both chambers and the governor to become law.
- Related legislation: SF 2012 (Senate companion).
Notes
- Specific numerical details (subtraction amount, eligible plan types, caps, sunset provisions) are not provided in the available information. Readers should consult the full bill text and any fiscal notes for precise parameters once released.
Compiled from official sources — confirm details with the bill’s official record.
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