Certain discharges of indebtedness subtraction provision and certain discharges of indebtedness from income for purposes of the property tax refund and the renter's income tax credit exclusion provision

This bill modifies Minnesota's tax code to allow certain debt discharges to be subtracted from taxable income for property tax refund and renter's tax credit purposes. It adds a new subtraction provision (Section 290.0132, Subd. 36) for debt discharges awarded under section 332.74, subdivision 3 (related to "coerced debt"). Taxpayers receiving these specific debt discharges will no longer count that amount as income when calculating eligibility for property tax refunds or the renter's income tax credit. The changes take effect for taxable years beginning after December 31, 2024.