Income tax subtractions for overtime pay, tips income, bonuses, and winnings from nonprofit lawful gambling organizations establishment

SF 2263 adds four new income tax subtractions to Minnesota's state tax code, reducing taxable income for specific earnings. It allows taxpayers to subtract overtime pay (wages for hours beyond standard workweek), tips reported to employers or the IRS, supplemental bonus payments, and winnings from licensed nonprofit gambling organizations. These subtractions apply to taxable income for years beginning after December 31, 2024. The bill directly affects Minnesotans who earn these income types by lowering their state tax liability, without changing tax rates.