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SF668 (Legislative Session 94 (2025-2026))

Subtraction modification for National Guard and reserve compensation

Related bill: HF152

AI Generated Summary

Senate File No 668 is a bill introduced in the Minnesota Senate that aims to modify the state's income tax code specifically concerning compensation received by members of the Minnesota National Guard, the National Guard of neighboring states (North Dakota, South Dakota, Iowa, or Wisconsin), or other U.S. military reserve components. The bill proposes to adjust how compensation for active service is deducted from state income tax.

The key points of the bill include:

  1. It defines "active service" to include a broader range of duties:

    • Duties performed on behalf of the state or neighboring states in cases like public disasters, wars, riots, or other emergencies.
    • Duties under United States Code title 32, which generally involves National Guard duties not under federal control but authorized by the federal government.
    • Travel related to these duties.

  2. It specifies that the tax subtraction applies to various kinds of active service, including what is termed as state active service and federally funded state active service, further emphasizing the support for National Guard and military reserve members by potentially reducing their state tax liabilities based on this service-related compensation.

Overall, the aim of the bill is to provide tax relief to members of the National Guard and military reserves by allowing them to subtract compensation for certain types of active duty service from their taxable income in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 26, 2025SenateFloorActionIntroduction and first reading
January 26, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies compensation eligibility for National Guard from neighboring states."
      ],
      "removed": [
        "None specified."
      ],
      "summary": "This bill modifies the subtraction for National Guard and reserve compensation under section 2900132 subdivision 11.",
      "modified": [
        "Updates definition of active service to align with current operational terms."
      ]
    },
    "citation": "2900132"
  },
  {
    "analysis": {
      "added": [
        "None specified."
      ],
      "removed": [
        "None specified."
      ],
      "summary": "The bill references section 19005 for definitions related to state active service and federally funded state active service.",
      "modified": [
        "References to clarify definitions, ensuring consistent interpretation across statutes."
      ]
    },
    "citation": "19005"
  },
  {
    "analysis": {
      "added": [
        "None specified."
      ],
      "removed": [
        "None specified."
      ],
      "summary": "The bill references section 19008 related to active service regulations.",
      "modified": [
        "Included reference to specific subdivisions for clarity on active service duties."
      ]
    },
    "citation": "19008"
  }
]

Sponsors