MN SF3335

Allows an additional personal exemption of $1,000 multiplied by the number of exemptions allowed under federal income tax law for Minnesota taxable years beginning after December 31, 2008.

Creates an optional alternate even rate tax of 6 percent on alternate even rate taxable income, allowing individuals, estates, and trusts to elect this method instead of the standard graduated rate calculation.

Alternate even rate taxable income is calculated using federal adjusted gross income plus certain additions, minus specific subtractions including standard deductions and personal/dependent exemptions.

Taxpayers electing the alternate even rate tax may only claim credits for taxes paid to other states and military service credits, and are prohibited from claiming most other Minnesota income tax credits.

Provides a proration formula for nonresidents and part-year residents calculating Minnesota income tax under the alternate even rate method based on Minnesota source income.