HF 1028 Summary

• Adds a new subtraction to Minnesota individual income tax for military retirement pay from federal government service computed under U.S. Code title 10, sections 1401-1414, 1447-1455, and 12733.

• For taxable years beginning after December 31, 2015 and before January 1, 2017, allows subtraction of 20 percent of military retirement compensation.

• Percentage increases by 20 percent each calendar year thereafter until reaching 100 percent subtraction of all qualifying military retirement pay.

• Requires conforming amendments to the alternative minimum tax definition to include the new military retirement subtraction among allowable deductions.

• Effective for taxable years beginning after December 31, 2014.