Unlimited Social Security subtraction provision

This bill would eliminate the current income-based limits on subtracting Social Security benefits from Minnesota state taxable income, allowing taxpayers to fully subtract all Social Security benefits they receive. It directly affects Minnesota residents who receive Social Security benefits and file state income tax returns, removing the existing phaseout thresholds and maximum subtraction caps that currently apply. Under the new provisions, all Social Security benefits would be deductible from taxable income without any reduction based on the taxpayer's adjusted gross income, simplifying the calculation and potentially lowering state tax liability for retirees. The change would take effect for taxable years beginning after December 31, 2025.