HF 304 Summary

• 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 federal military pay codes.

• Limits the subtraction for federal and civil service pensions to a "military service ratio," calculated by dividing years of service credited for military service by total service credited.

• Restricts the military retirement pay subtraction to individuals who do not claim the credit under Minnesota Statutes section 290.0677, preventing double tax benefits.

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

• Effective for taxable years beginning after December 31, 2022.