MN HF3113

Adds a new deduction for Minnesota residents' military retirement pay and pensions received from the federal government under United States Code title 10, sections 1401-1414, 1447-1455, and 12733, effective for tax years beginning after December 31, 2013.

Allows compensation from Minnesota National Guard and reserve military members for active service to be subtracted from federal taxable income, excluding Active Guard Reserve (AGR) program compensation.

Permits federal armed forces members and United Nations service members to deduct military compensation from federal taxable income.

Extends the military compensation deduction to nonresidents of Minnesota for service-related pay as defined in the Servicemembers Civil Relief Act.

Modifies the alternative minimum taxable income calculation to include the new military retirement pay deduction in the subtraction formula for tax year 2014 and forward.