Individual income tax subtraction expanded for military retirement pay.

HF 347 expands Minnesota's individual income tax deduction for military retirement pay. The bill adds three specific provisions allowing taxpayers to subtract military retirement income from taxable income: (1) certain military pensions under federal law, (2) federal employee retirement pensions multiplied by military service ratio, and (3) civil service retirement pensions multiplied by military service ratio. It also prohibits taxpayers claiming another specific credit (section 290.0677) from using this deduction. The change applies to tax years beginning after December 31, 2024, directly benefiting Minnesota residents receiving qualifying military retirement pay.