HF4573

Purpose

This bill creates a tax benefit for people who receive pension income from volunteer firefighting work. It adds a subtraction from Minnesota individual income tax for volunteer firefighter pension income.

Main Provisions

• Adds Subdivision 40 to Minnesota Statutes 2024, section 290.0132, to establish a volunteer firefighter pension income subtraction.
• The subtraction applies to the amount of volunteer firefighter pension income.
• Definitions for who qualifies as a volunteer firefighter include:
  • a volunteer firefighter as defined in section 424A.001 subdivision 10
  • a paid on-call firefighter as defined in section 424A.001 subdivision 10a
  • a volunteer firefighter as defined in section 353G.01 subdivision 15
• Volunteer firefighter pension income is defined as annuity income or a lumpsum payment from a public retirement plan based on service as a volunteer firefighter.

Significance and Changes to Existing Law

• Creates a new tax subtraction that reduces taxable income for individuals receiving certain pension income tied to volunteer firefighting.
• Expands the types of firefighter classifications eligible for this subtraction by referencing specific statutory definitions.
• Provides a clear definition of what qualifies as “volunteer firefighter pension income” (annuity or lumpsum payments from a public retirement plan) to guide the subtraction.

Plain-Language Summary

The bill lets qualifying volunteers who receive a pension from a public retirement plan for their firefighting service deduct that pension money from their taxable income when filing Minnesota taxes.

Relevant Terms - volunteer firefighter - paid on-call firefighter - volunteer firefighter pension income - subtraction (income tax subtraction) - Minnesota Statutes 2024 section 290.0132 - Subdivision 40 - annuity income - lumpsum payment - public retirement plan - service as a volunteer firefighter - section 424A.001 subdivision 10 - section 424A.001 subdivision 10a - section 353G.01 subdivision 15