MN HF2091

Expands the Minnesota income tax subtraction for military retirement pay to include federal employee retirement system pensions and civil service retirement system pensions, in addition to compensation computed under United States Code title 10.

Limits the subtraction for federal employee and civil service pensions to an amount calculated by multiplying the total pension by the taxpayer's "military service ratio" (the proportion of service years credited for military service divided by total service years).

Restricts the subtraction to taxpayers who do not claim the credit under section 290.0677.

Requires the tax commissioner to calculate the military service ratio using full years and months of credited service, excluding any fractional part of a month.

Effective for taxable years beginning after December 31, 2020.