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HF1632 (Legislative Session 94 (2025-2026))

Foreign service pension income subtraction provided.

Related bill: SF211

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend tax regulations in Minnesota to provide a tax benefit for individuals who receive pension or retirement pay related to their service in the foreign service.

Main Provisions

  • The bill introduces a subtraction on state income tax for compensation received from federal pensions related to foreign service work.
  • This subtraction applies to individuals who have served in the foreign service and have retirement pay established under federal law (United States Code, Title 22, Section 4071).
  • The subtraction amount is calculated by taking the total compensation received from the foreign service pension and multiplying it by the ratio of the number of years of foreign service to the total number of years in civil service for which the taxpayer receives pension income.

Significant Changes

  • The bill adds a new provision to the Minnesota Statutes, Section 290.0132, allowing a specific group of retirees (those who served in the foreign service) to reduce their taxable income by a portion of their federal pension.

Relevant Terms

subtraction, foreign service, pension, retirement pay, federal government, taxable income, United States Code Title 22, Minnesota Statutes, civil service

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision for subtraction of foreign service pension income under section 290.0132."
      ],
      "removed": [],
      "summary": "This bill amends the Minnesota Statutes to provide a subtraction for foreign service pension income.",
      "modified": []
    },
    "citation": "290.0132"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references modifications to subdivision 2 of section 290.091 regarding individual income taxation.",
      "modified": [
        "Potential changes to the calculation of taxable income under section 290.091 subdivision 2."
      ]
    },
    "citation": "290.091"
  }
]

Sponsors