Individual income tax subtraction provided for overtime pay.

This bill, HF 1365, creates a tax benefit for Minnesota residents who earn overtime pay. It adds a new provision to the state's tax code allowing workers to subtract their overtime earnings from their taxable income. Specifically, it defines "overtime pay" as wages, salaries, tips, or other compensation for hours worked beyond the standard workweek under state or federal law. This change would reduce the taxable income of eligible workers, lowering their state income tax liability for the 2025 tax year and beyond. The provision applies only to Minnesota taxpayers with overtime earnings subject to state tax.