Foreign service pension income subtraction provided.

HF 1632 creates a tax subtraction for Minnesota taxpayers who receive pension income from U.S. Foreign Service retirement (under federal law). It directly affects Minnesota residents who served in the U.S. Foreign Service and now receive federal pension payments. The bill allows these taxpayers to reduce their Minnesota taxable income by a percentage calculated as (years of foreign service ÷ total civil service years) multiplied by their pension amount. This change takes effect for tax years beginning after December 31, 2024.