This bill amends Minnesota Statutes to provide a subtraction for foreign service pension income from individual income tax calculations. Specifically, it introduces a new subdivision under section 290.0132 that allows taxpayers to subtract compensation received from a federal pension or retirement pay for foreign service, as established under U.S. Code, title 22, section 4071. The subtraction amount is calculated based on the years of foreign service relative to total civil service years for which the taxpayer receives pension income. This provision is effective for taxable years beginning after December 31, 2024.

Additionally, the bill amends section 290.091, subdivision 2, to update the definitions related to alternative minimum taxable income. Notably, it modifies the list of amounts subtracted from federal taxable or adjusted gross income by replacing the reference to subdivision 35 with subdivision 36. This change also takes effect for taxable years beginning after December 31, 2024. Overall, the bill aims to provide tax relief for individuals receiving foreign service pensions while clarifying the definitions related to alternative minimum taxable income.

Statutes affected:
Introduction: 290.0132, 290.091