Federal individual income tax deduction for qualified overtime compensation adopted.

HF 3524 would allow Minnesota taxpayers to deduct qualified overtime pay from their state taxable income, aligning Minnesota's tax code with a federal deduction for overtime compensation. This bill directly affects Minnesota residents who earn overtime pay and file state income taxes. The key provision adopts the federal definition of "qualified overtime compensation" under Internal Revenue Code section 225, permitting this deduction for taxable years beginning after December 31, 2028, though it applies retroactively to years starting after December 31, 2024. The bill amends Minnesota Statutes 2024, section 290.0132, to add this deduction as a subtraction from taxable income.