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HF3792 (Legislative Session 94 (2025-2026))

Individual income tax subtraction for AmeriCorps stipends and living allowances established.

Related bill: SF3865

AI Generated Summary

Purpose

The bill would add certain AmeriCorps-related stipends, living allowances, and education awards to Minnesota’s list of tax-exempt income (a subtraction from state taxable income). This means qualifying amounts would not be taxed by Minnesota income tax.

Main Provisions

  • Adds four specific items to the income subtraction in Minnesota Statutes 2024 section 290.0132 subdivision 16: 1) A stipend paid to an AmeriCorps volunteer under United States Code title 42 section 4955. 2) A living allowance provided to a National Civilian Community Corps (NCCC) volunteer under United States Code title 42 section 12618. 3) A stipend paid to an AmeriCorps Seniors volunteer under United States Code title 42 sections 5011 and 5013b. 4) A national service educational awards (awards from the National Service Trust) under United States Code title 42 sections 12601 to 12604.
  • These amounts would be treated as a subtraction from income for purposes of Minnesota individual income tax for service in an approved AmeriCorps National Service program.

What This Changes About the Law

  • Expands the types of AmeriCorps-related compensation that are not considered taxable income at the state level.
  • Tightens or clarifies that the subtraction applies specifically to amounts tied to service in an approved AmeriCorps National Service program and cited in the referenced federal law sections.

Practical Impact

  • Individuals who receive AmeriCorps stipends, AmeriCorps Seniors stipends, AmeriCorps living allowances, or National Service Educational Awards may reduce their Minnesota state income tax by the amount of those payments, to the extent they would otherwise be included in income.
  • This aligns Minnesota tax treatment with federal program benefits and could lower the after-tax value of these programs for participants.

Significance and Scope

  • Focuses on income tax treatment for participants in AmeriCorps and related national service programs.
  • Applies to "subtraction" from income, not a tax credit or deduction elsewhere; affects how much of these payments are considered taxable by Minnesota.

Implementation Note

  • The changes are enacted by amending Minnesota Statutes 2024 section 290.0132 subdivision 16, adding the listed items as protected subtractions.

Relevant Terms AmeriCorps, AmeriCorps Seniors, National Civilian Community Corps (NCCC), National Service Educational Awards, National Service Trust, United States Code, Title 42, 4955, 12618, 5011, 5013b, 12601-12604, subtraction, income, Minnesota Statutes 290.0132, subdivision 16, approved AmeriCorps National Service program, Minnesota state income tax.

Bill text versions

Past committee meetings

  • Taxes on: March 12, 2026 10:15

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2026HouseActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds AmeriCorps living allowances and stipends under the subtraction in Minn. Stat. 290.0132, subd. 16.",
        "Specifically lists: AmeriCorps volunteer stipend (42 U.S.C. § 4955), National Civilian Community Corps living allowance (42 U.S.C. § 12618), AmeriCorps Seniors stipend (42 U.S.C. §§ 5011, 5013b), and National Service Educational Awards (National Service Trust) (42 U.S.C. §§ 12601–12604)."
      ],
      "removed": [],
      "summary": "Amends Minnesota Statutes 2024, section 290.0132, subdivision 16 to include AmeriCorps living allowances, stipends, and national service educational awards as a subtraction from income for individual income tax purposes, referencing federal law for these programs.",
      "modified": []
    },
    "citation": "290.0132",
    "subdivision": "subdivision 16"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the federal statute governing AmeriCorps volunteer stipends included as a subtraction under Minnesota tax law.",
      "modified": []
    },
    "citation": "42 U.S.C. § 4955",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the federal statute governing National Civilian Community Corps living allowances included as a subtraction.",
      "modified": []
    },
    "citation": "42 U.S.C. § 12618",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the federal statutes governing AmeriCorps Seniors stipends included as a subtraction.",
      "modified": []
    },
    "citation": "42 U.S.C. §§ 5011 and 5013b",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the federal statutes governing National Service Educational Awards (National Service Trust) included as a subtraction.",
      "modified": []
    },
    "citation": "42 U.S.C. §§ 12601-12604",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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