HF4573 (Legislative Session 94 (2025-2026))
Individual income tax subtraction for volunteer firefighter pension income established.
Related bill: SF4903
AI Generated Summary
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
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Subd. 40: Volunteer firefighter pension income subtraction."
],
"removed": [],
"summary": "Adds Subd. 40 to Minnesota Statutes 2024 § 290.0132 to provide an subtraction for volunteer firefighter pension income from individual income tax.",
"modified": []
},
"citation": "290.0132",
"subdivision": "Subd. 40"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'volunteer firefighter' as used in Subd. 40, including the definition from 424A.001 Subd. 10 and Subd. 10a and the definition in 353G.01 Subd. 15.",
"modified": []
},
"citation": "424A.001",
"subdivision": "Subd. 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'paid on-call firefighter' as used in Subd. 40.",
"modified": []
},
"citation": "424A.001",
"subdivision": "Subd. 10a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provides the definition of 'volunteer firefighter' in the pension context, referenced in Subd. 40.",
"modified": []
},
"citation": "353G.01",
"subdivision": "Subd. 15"
}
]