MN SF4

Expands Minnesota's income tax subtraction for military retirement pay to include portions of Federal Employee Retirement System (FERS) and Civil Service Retirement System (CSRS) pensions attributable to military service

Creates a "military service ratio" calculation that divides years of credited military service by total years of service to determine the subtractable portion of federal civilian pensions

Maintains existing full subtraction for direct military retirement pay computed under U.S. Code Title 10 (sections 1401-1414, 1447-1455, and 12733)

Prohibits taxpayers from claiming both this subtraction and the credit under section 290.0677

Effective for taxable years beginning after December 31, 2024