Committee hears bill to exempt AmeriCorps living stipends from state income tax

Representative Joakim presented House File 3792, which would extend Minnesota's existing exemption for AmeriCorps education awards to the modest living stipends AmeriCorps members receive during service. "House File 37‑92 would put a few more dollars in their pockets," Julia Quanrude, who leads Serve Minnesota, told the panel.

Quanrude said more than 2,000 Minnesotans serve in AmeriCorps programs each year and described service roles from tutoring to disaster response. She said the stipend is not equivalent to earned income and that the state already exempts the post-service education award; this bill would align living stipends with that treatment.

Nalani McCutchen, executive director of Conservation Corps Minnesota & Iowa, offered examples of members who relied on the stipend while gaining workforce skills and said modest tax relief would reduce economic stress and support career transitions.

Committee members noted a fiscal note in the packet and ongoing discussions with the Department of Revenue about assumptions. Representative Joakim said the bill is bipartisan and asked the committee to lay it over for possible inclusion in the 2026 tax bill; the committee carried the motion.