Individual income tax exemption provided for income earned by certain nonresident employees.

HF 950 exempts Minnesota income tax on wages earned by nonresident workers who perform employment duties in Minnesota for 30 days or fewer annually. It applies only to workers whose primary residence is in another state, who work in multiple states during the year, and whose home state offers similar tax treatment or has no income tax. Employers must track work days via a time and attendance system or documented records to qualify for the exemption and avoid penalties. The policy takes effect for tax years beginning after December 31, 2025.