HF323 (Legislative Session 94 (2025-2026))
Individual income tax subtraction established for expenses related to parking at a health facility.
Related bill: SF1603
AI Generated Summary
Purpose
To create a new individual income tax subtraction for parking costs incurred at health facilities. The bill would allow Minnesota taxpayers to subtract parking expenses related to health care from their taxable income, starting from the amount over $100.
Main Provisions
- Establishes Subdivision 36 to Minnesota Statutes section 290.0132, adding a subtraction for "expenses related to parking at a health facility."
- The subtraction applies to the amount of eligible health facility parking expenses in excess of $100.
- Defines who can incur eligible health facility parking expenses (patients receiving care, visitors of eligible patients, and employees working at the facility) and who is an eligible patient.
Key Definitions
- eligible health facility: hospitals or outpatient surgical centers licensed under sections 144.50 to 144.56; physician offices; medical or dental clinics; or birth centers licensed under section 144.615.
- eligible patient: an individual receiving health care from an eligible health facility.
- eligible family member: a spouse or qualifying relative as defined in Internal Revenue Code section 152(d).
- eligible health facility parking expenses: cash parking payments made to park at an eligible health facility for the purpose of receiving health care, visiting an eligible patient (if the patient is an eligible family member), or for an employee of the facility working there.
How the Subtraction Works
- The subtraction equals the amount of eligible health facility parking expenses that exceed $100.
- Eligible expenses are those actually paid in cash to park at the facility for the described purposes.
Exclusions and Interactions with Other Provisions
- Excluded from the subtraction are:
- amounts that have already been deducted as medical expenses under Minnesota Statutes 290.0122, subdivision 6;
- amounts paid or reimbursed from a health savings account (HSA) or from a health flexible spending arrangement (FSA);
- amounts for which the taxpayer was otherwise reimbursed (including reimbursements from an employer).
Significance and Changes to Law
- Creates a new, above-$100 subtraction for health facility parking expenses, adding to the existing individual income tax code.
- Aligns with broader tax concepts by tying the subtraction to specific health care-related parking costs and clarifying interactions with HSAs, FSAs, and other reimbursements.
Practical Considerations
- The deduction is limited to parking expenses actually paid in cash and to expenses at eligible health facilities as defined.
- Taxpayers who only have parking costs below $100 would not gain a subtraction.
- The bill explicitly prevents double-dipping with other health-related tax benefits or reimbursements.
Relevant Terms - subtraction - expenses related to parking at a health facility - eligible health facility - eligible patient - eligible family member - health facility parking expenses - health savings account (HSA) - health flexible spending arrangement (FSA) - Internal Revenue Code - Minnesota Statutes 290.0132 - subdivision - medical expenses deduction (Section 290.0122)
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 13, 2025 | House | Action | Introduction and first reading, referred to | Taxes | |
| February 20, 2025 | House | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Subd.36: Expenses related to parking at a health facility.",
"The subtraction equals eligible health facility parking expenses in excess of $100.",
"Definitions: eligible family member; eligible health facility; eligible health facility parking expenses; eligible patient.",
"Exclusions: amounts deducted as medical expenses under 290.0122, subdivision 6; amounts paid or reimbursed from a health savings account (as defined in Internal Revenue Code § 223(d)); amounts paid or reimbursed from a health flexible spending arrangement (as defined in Internal Revenue Code § 106(c)(2)); and for which the taxpayer was otherwise reimbursed (including employer reimbursements)."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 290.0132 by adding Subd.36 to create an income tax subtraction for expenses related to parking at a health facility. It defines eligible health facility parking expenses and who may count them, and specifies the subtraction applies to expenses exceeding $100. It also identifies the related definitions and exclusions relevant to the subtraction.",
"modified": []
},
"citation": "290.0132",
"subdivision": "subd.36"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes sections 144.50 to 144.56 for licensing of eligible health facilities; the bill's definition ties eligible health facilities to facilities licensed under these sections.",
"modified": []
},
"citation": "144.50 to 144.56",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Minnesota Statutes section 144.615 for birth center licensing as part of the eligible health facility definitions.",
"modified": []
},
"citation": "144.615",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites Minnesota Statutes 2024 section 290.0122, subdivision 6, which provides the medical expenses deduction that is excluded from the new health facility parking subtraction.",
"modified": []
},
"citation": "290.0122",
"subdivision": "subd.6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines eligible family member as a spouse or qualifying relative as defined in Internal Revenue Code section 152(d).",
"modified": []
},
"citation": "Internal Revenue Code § 152(d)",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines health savings account as referenced (as defined in section 223(d)) of the Internal Revenue Code.",
"modified": []
},
"citation": "Internal Revenue Code § 223(d)",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines health flexible spending arrangement as referenced (defined in section 106(c)(2)) of the Internal Revenue Code.",
"modified": []
},
"citation": "Internal Revenue Code § 106(c)(2)",
"subdivision": ""
}
]Progress through the legislative process
In Committee