MN SF2006

Provides a phased-in state income tax subtraction for military retirement pay received from the federal government for service computed under United States Code, title 10, sections 1401-1414, 1447-1455, and 12733.

Subtraction is 25 percent of military retirement compensation for taxable years beginning after December 31, 2011 and before January 1, 2013.

Subtraction increases to 55 percent of military retirement compensation for taxable years beginning after December 31, 2012.

Amends Minnesota Statutes section 290.01, subdivision 19b to add military retirement pay as a new subtraction category (clause 19).

Amends Minnesota Statutes section 290.091, subdivision 2 to include the military retirement pay subtraction in calculating alternative minimum taxable income for purposes of the alternative minimum tax.