The bill amends Minnesota Statutes 2024, specifically section 290.0132, subdivision 21, to expand the subtraction for military retirement pay from federal adjusted gross income. It introduces new provisions that allow taxpayers to subtract specific amounts from their income, including compensation received from military pensions and retirement pay, as well as amounts from federal employee and civil service retirement system pensions, adjusted by a "military service ratio." This ratio is defined based on the years of military service credited to the taxpayer compared to their total service.

Additionally, the bill clarifies the calculation of the military service ratio and specifies that the commissioner must consider only full years and months of service, excluding fractional months. The effective date for these changes is set for taxable years beginning after December 31, 2024. Overall, the bill aims to provide greater tax relief for veterans by allowing them to retain more of their retirement income.

Statutes affected:
Introduction: 290.0132