Individual income tax subtraction for capital gains on the sale of a principal residence established.

This bill would allow Minnesota residents to subtract certain capital gains from the sale of their main home from their state income tax. It creates a new provision that mirrors the federal tax exclusion limits, letting homeowners exclude up to $250,000 or $500,000 in gains depending on their filing status. The change would apply to taxable years starting after December 31, 2025, and only affects properties that qualify for the federal principal residence exclusion.