Income tax subtraction of back pay allowed for military members discharged due to the military's COVID-19 vaccination mandate.

This bill allows Minnesota military members who were discharged due to the military's COVID-19 vaccination mandate to subtract their back pay from their state income tax. It directly affects service members who received back pay under a specific federal executive order (E.O. 14184, Jan. 27, 2025) for being separated over vaccination requirements. The policy reduces taxable income for qualifying individuals, meaning they pay less state tax on that back pay amount. The change applies to tax returns filed for years beginning after December 31, 2024.