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HF 1115

Individual income tax subtractions for overtime pay, tips income, bonuses, and winnings from nonprofit lawful gambling organizations provided; and changes to withholding provisions made.

2025-2026 Regular Session Introduced by Greg Davids and 2 co-sponsors

HF 1115 would create Minnesota income tax subtractions for overtime pay, tips, bonuses, and nonprofit gambling winnings, and revise withholding rules for affected workers.

Introduction and first reading, referred to Taxes
#gambling #taxation-income
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WeVote Research Nonpartisan
Bill Summary · HF 1115

HF 1115 — Summary

Overview

HF 1115 proposes to create individual income tax subtractions for several categories of earnings and to modify related withholding provisions. The bill's stated focus is on overtime pay, tips, bonuses, and winnings from nonprofit lawful gambling organizations. It is introduced and referred to the House Taxes Committee as of February 19, 2025. A companion bill exists in the Senate, SF 2263.

  • Bill number: HF 1115
  • Title: Individual income tax subtractions for overtime pay, tips income, bonuses, and winnings from nonprofit lawful gambling organizations provided; and changes to withholding provisions made
  • Status: Introduction and first reading; referred to Taxes
  • Introduced: February 19, 2025
  • Related bill (companion): SF 2263
  • Subject: Gambling, Taxation—Income

Purpose and Intent

  • Establish additional subtractions from adjusted gross income (AGI) for individual Minnesota income tax purposes.
  • Specifically target the following types of earnings:
    • Overtime pay
    • Tips income
    • Bonuses
    • Winnings from nonprofit lawful gambling organizations
  • Implement changes to withholding provisions, potentially affecting how employers calculate and remit tax withholdings for employees eligible for these subtractions.

Key Provisions (as described)

  • Create subtractions from taxable income for:
    • Overtime pay
    • Tips income
    • Bonuses
    • Winnings from nonprofit lawful gambling organizations
  • Modify withholding provisions to align with the new subtractions (details on scope, thresholds, or methods would be specified in the bill text).
  • The exact amounts, caps, eligibility criteria, and definitions (e.g., what constitutes “nonprofit lawful gambling organizations,” how winnings are treated, and whether partial or aggregated winnings qualify) would be defined in the bill's language.

Affected Parties

  • Minnesota individual income taxpayers who earn overtime pay, tips, bonuses, or winnings from nonprofit lawful gambling organizations.
  • Employers and payroll personnel, due to changes in withholding rules and calculations.

Procedural Timeline and Next Steps

  • Introduced and first reading on February 19, 2025, and referred to the House Taxes Committee.
  • As a first-reading measure, the bill would proceed to committee hearings, potential amendments, and then floor action if advancing.
  • Fiscal notes, potential cost/impact analyses, and stakeholder testimony would typically follow in subsequent steps.

Additional Context

  • Related legislation: SF 2263 (Senate companion), providing a parallel path for consideration.
  • Subject alignment: GAMBLING, Taxation-Income.

Potential Implications to Monitor

  • The size of the subtraction—whether fixed amounts, percentages, or tiered structures—will determine the impact on taxable income and state revenue.
  • Interaction with existing deductions and credits in Minnesota tax law.
  • Clarity on withholding changes to ensure accurate tax remittance by employers and proper withholding for employees claiming the subtractions.
  • Administrative burden on taxpayers and agencies for compliance and guidance.

If you’d like, I can tailor this summary to emphasize fiscal impact, stakeholder concerns, or compare HF 1115 to the companion SF 2263 once the full bill text is available.

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

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