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SF1590 (Legislative Session 94 (2025-2026))

Income tax subtraction of back pay permission for military members discharged due to the military's COVID-29 vaccination mandate

Related bill: HF860

AI Generated Summary

Purpose

  • Establish a Minnesota individual income tax subtraction for the military back pay owed to service members who were discharged due to the military’s COVID-19 vaccination mandate, making that back pay non-taxable under Minnesota tax rules.

Main provisions

  • Subtraction for back pay: The bill designates the amount of military back pay for service members discharged under the military’s COVID-19 vaccination mandate as a subtraction from Minnesota adjusted gross income (i.e., it will be treated as non-taxable income).
  • Amount defined by federal order: For this subtraction, “military back pay” means the amount authorized under section 2 paragraph b of Executive Order No. 14184, dated January 27, 2025, issued by the President of the United States.
  • Tax treatment framework: The subtraction uses the definition of “subtraction” as provided in Minnesota Statutes section 290.0132 subdivision 1, and the rules in that subdivision apply to this section.

Significant changes to existing law

  • New tax exclusion: Adds a specific non-taxable amount to Minnesota individual income tax calculations for a narrowly defined group—service members discharged due to the COVID-19 vaccination mandate—potentially reducing their state tax liability.
  • Federal-state linkage: Ties the amount to the federal executive order’s specified back pay amount, and relies on the Minnesota statutory framework for how a subtraction is applied.

Additional context

  • The provision explicitly targets back pay awarded to service members discharged under the vaccination mandate and uses existing tax-definition language to implement the subtraction.

Relevant Terms - income tax subtraction - back pay - military back pay - service members - discharged - COVID19 vaccination mandate - non-taxable - Executive Order No. 14184 - January 27, 2025 - section 2 paragraph b - President of the United States - Minnesota Statutes section 290.0132 subdivision 1 - rules in that subdivision - subtraction

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 20, 2025SenateActionIntroduction and first reading
February 20, 2025SenateActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites Minnesota Statutes section 290.0132, subdivision 1, to define the meaning of 'subtraction' and to apply the rules in that subdivision to this back pay subtraction.",
      "modified": []
    },
    "citation": "290.0132",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References a federal executive order (No. 14184, dated January 27, 2025) as the basis for the amount of military back pay treated as a subtraction for tax purposes.",
      "modified": []
    },
    "citation": "Executive Order No. 14184",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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