Exemption provision for income earned by certain nonresident employees

This bill exempts income earned by certain nonresident employees from Minnesota income tax. It applies to workers who live in another state (returning monthly), work in Minnesota for 30 days or fewer annually, perform duties in multiple states, and whose home state offers similar tax relief or has no income tax. Employers must maintain time/attendance records to verify compliance, and penalties for failing to withhold tax are waived if employers follow specific record-keeping procedures. The exemption applies to income earned after December 31, 2025.