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