The bill amends Minnesota Statutes 2024, 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 the "military service ratio" for calculating the eligible subtraction amounts and outlines how this ratio is determined based on the years of service credited to the taxpayer for military service. The effective date for these changes is set for taxable years beginning after December 31, 2024. Overall, the bill aims to provide tax relief for veterans by expanding the scope of military retirement pay that can be excluded from taxable income.

Statutes affected:
Introduction: 290.0132