Volunteer firefighter pension income taxation subtraction establishment

This bill creates a tax subtraction for volunteer firefighter pension income in Minnesota, meaning eligible individuals would not pay state income tax on retirement benefits earned from volunteer firefighting service. It directly affects volunteer firefighters, paid on-call firefighters, and other designated volunteer fire service personnel who receive annuity income or lump-sum payments from public retirement plans based on their firefighting service. The legislation defines who qualifies as a volunteer firefighter by referencing existing state definitions and specifies that the tax benefit applies to pension income derived specifically from their volunteer service. The changes would take effect for taxable years beginning after December 31, 2025.