This bill amends Minnesota Statutes to provide a subtraction for foreign service pension income from individual income taxes. Specifically, it introduces a new subdivision under section 290.0132, which allows taxpayers to subtract compensation received from a federal pension or retirement pay for service in the foreign service, as established under U.S. Code. The subtraction is calculated based on the amount of compensation and the ratio of years of foreign service to total years of civil service 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. It includes a change in the list of amounts subtracted from federal taxable or adjusted gross income, specifically updating the reference from subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, and 35 to now include up to subdivision 36. This amendment also takes effect for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.0132, 290.091