Bill > SF211

This bill creates a new tax subtraction for foreign service pension income in Minnesota. Specifically, the bill allows individuals who receive a pension or retirement pay from the federal government for foreign service (as established under U.S. Code, title 22, section 4071) to subtract a portion of that income from their state taxes. The subtraction amount is calculated by multiplying the total compensation received by a fraction that represents the number of years of foreign service divided by the total number of years of civil service for which the taxpayer receives pension income. The bill also makes a corresponding technical amendment to the state's alternative minimum tax calculation to include this new subtraction. The tax benefit will apply to taxable years beginning after December 31, 2024, meaning it will first be available for the 2025 tax year. This change aims to provide tax relief for individuals who have served in the foreign service by reducing their state tax liability proportional to their years of service.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0211&ssn=0&y=2025