Federal deduction for qualified overtime compensation adoption

This bill allows Minnesota residents to deduct qualified overtime compensation from their state income taxes, mirroring a federal tax provision. It directly affects workers who earn overtime pay and file state income tax returns in Minnesota. The law adds a new subtraction category to state tax code, permitting the deduction for taxable years starting after December 31, 2028, with retroactive application to years beginning after December 31, 2024. The measure amends existing Minnesota statutes to incorporate this specific tax treatment for overtime income.