This Minnesota Senate bill (S.F. No. 2012) proposes an amendment to the state's tax code to allow a subtraction from taxable income for certain retirement benefits. Specifically, it allows Minnesota residents to subtract qualified distributions from retirement plans, including 401(k) plans and individual retirement accounts (IRAs), from their taxable income.

Key provisions: 1. Eligibility: Taxpayers must be at least 65 years old by the end of the taxable year. 2. Subtraction Limits:
- Married couples filing jointly (both spouses at least 65): The lesser of their qualified distributions or $150,000.
- Other eligible taxpayers (single filers, etc.): The lesser of their qualified distributions or $75,000.

If enacted, this bill would reduce taxable income for retirees receiving distributions from qualified retirement plans, potentially lowering their state income tax burden.