Tax refunds; overtime income tax subtraction provided, Minnesota child tax credit expanded, onetime expansion of property tax refunds provided, and new fifth tier individual income tax rate established.

This bill introduces several tax changes for Minnesota residents, including a new subtraction for qualified overtime income, an expansion of the Minnesota child tax credit, and a one-time increase in property tax refunds. It also establishes a new fifth tier of individual income tax rates, creating a progressive structure where income above $1 million for married couples filing jointly is taxed at 11.45 percent. The overtime income provision applies retroactively to taxable years beginning after December 31, 2024, while the new income tax brackets and rates affect current and future tax filings. These measures directly impact individual taxpayers by modifying how certain income types are calculated and taxed under Minnesota law.