| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; individual income; expanding the subtraction for military |
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| 3 | 3 | | 1.3 retirement pay; amending Minnesota Statutes 2024, section 290.0132, subdivision |
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| 4 | 4 | | 1.4 21. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 290.0132, subdivision 21, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 21.Military service pension; retirement pay.(a) To the extent included in |
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| 8 | 8 | | 1.8federal adjusted gross income, compensation received from a pension or other retirement |
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| 9 | 9 | | 1.9pay from the federal government for service in the military, as is a subtraction. Only the |
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| 10 | 10 | | 1.10following amounts may be subtracted under this subdivision: |
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| 11 | 11 | | 1.11 (1) compensation computed under United States Code, title 10, sections 1401 to 1414, |
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| 12 | 12 | | 1.121447 to 1455, and 12733, is a subtraction.; |
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| 13 | 13 | | 1.13 (2) the total amount of a federal employee retirement system pension under United States |
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| 14 | 14 | | 1.14Code, title 5, chapter 84, multiplied by the taxpayer's military service ratio; and |
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| 15 | 15 | | 1.15 (3) the total amount of a civil service retirement system pension under United States |
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| 16 | 16 | | 1.16Code, title 5, chapter 83, subchapter III, multiplied by the taxpayer's military service ratio. |
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| 17 | 17 | | 1.17 (b) The subtraction is limited to individuals who do not claim the credit under section |
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| 18 | 18 | | 1.18290.0677. |
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| 19 | 19 | | 1.19 (c) For purposes of this subdivision, "military service ratio" means: |
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| 20 | 20 | | 1.20 (1) in the case of a federal employee retirement system pension, the years of service |
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| 21 | 21 | | 1.21credited to the taxpayer for military service under United States Code, title 5, section 8411, |
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| 22 | 22 | | 1.22divided by the total service credited to the taxpayer under that section; and |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | 25-00723 as introduced11/22/24 REVISOR EAP/HL |
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| 25 | 25 | | SENATE |
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| 26 | 26 | | STATE OF MINNESOTA |
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| 27 | 27 | | S.F. No. 4NINETY-FOURTH SESSION |
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| 28 | 28 | | (SENATE AUTHORS: RARICK) |
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| 29 | 29 | | OFFICIAL STATUSD-PGDATE |
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| 30 | 30 | | Introduction and first reading01/16/2025 |
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| 31 | 31 | | Referred to Taxes 2.1 (2) in the case of a civil service retirement system pension, the years of service credited |
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| 32 | 32 | | 2.2to the taxpayer for military service under United States Code, title 5, section 8322, divided |
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| 33 | 33 | | 2.3by the total service credited to the taxpayer under that section. |
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| 34 | 34 | | 2.4 (d) For purposes of calculating the ratio under paragraph (b), the commissioner must |
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| 35 | 35 | | 2.5consider the number of full years and months credited to the taxpayer, excluding any |
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| 36 | 36 | | 2.6fractional part of a month, if any. |
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| 37 | 37 | | 2.7 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 38 | 38 | | 2.831, 2024. |
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| 39 | 39 | | 2Section 1. |
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| 40 | 40 | | 25-00723 as introduced11/22/24 REVISOR EAP/HL |
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