State individual income tax subtraction allowed for damage awards.

HF 3611 allows Minnesota taxpayers to subtract certain damage awards from their state taxable income. It specifically covers damages from sexual harassment or abuse claims (not excluded under federal tax law) and damages from injuries caused by federal immigration enforcement activities. This change reduces the taxable income of Minnesotans who receive these specific types of compensation. The law takes effect for tax years beginning after December 31, 2025.