MN SF3568

Allows a subtraction from federal taxable income for compensation received from a pension or other retirement pay from the federal government for service in the military, computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, and 12733.

Imposes an annual income surtax on net income in excess of $250,000 for resident and nonresident individuals, estates of decedents, and trusts, effective for taxable years beginning after December 31, 2015.

Requires the commissioner of revenue to determine a new surtax rate by January 15, 2017 sufficient to offset revenue reductions from the military pension subtraction, rounded to the nearest one-tenth of one percent.

Amends the alternative minimum tax provisions to include the new military pension subtraction as an allowable deduction in calculating alternative minimum taxable income.

All provisions are effective for taxable years beginning after December 31, 2015.