Limited individual income tax subtraction permitted for income received from a retirement savings plan.

HF 316 creates a new tax subtraction for Minnesota taxpayers receiving income from retirement savings plans, such as 401(k)s or IRAs. It allows a maximum subtraction of $12,000 for married couples filing jointly or surviving spouses, and $6,000 for other filers, subject to a 20% reduction for adjusted gross income over $32,000. The subtraction is unavailable to taxpayers claiming other specific subtractions under Minnesota law. This policy directly affects individuals receiving retirement income who file Minnesota tax returns, providing limited tax relief based on filing status and income level. The bill takes effect for tax years beginning after December 31, 2024.