The bill amends Minnesota Statutes 2022, section 290.0132, subdivision 21, to expand the subtraction for military retirement pay from individual income tax. It introduces new provisions that allow taxpayers to subtract specific amounts from their federal adjusted gross income, including compensation received from military pensions and retirement pay. The bill specifies that the amounts eligible for subtraction include compensation from the federal employee retirement system and the civil service retirement system, both adjusted by the taxpayer's military service ratio.

Additionally, the bill defines "military service ratio" for the purpose of calculating the subtraction, detailing how it is determined based on years of service credited to the taxpayer for military service. It also clarifies that the calculation will exclude any fractional parts of a month. The changes are set to take effect for taxable years beginning after December 31, 2022.

Statutes affected:
Introduction: 290.0132