Subtraction modification for National Guard and reserve compensation

SF 668 amends Minnesota Statutes to clarify which National Guard and reserve military compensation qualifies for a state income tax subtraction. It specifically defines "active service" for tax purposes, including state active duty during disasters or under federal programs, and adds North Dakota, South Dakota, Iowa, and Wisconsin as qualifying neighboring states for certain service. This change directly affects Minnesota National Guard members, reserve military personnel, and those from qualifying neighboring states serving in active duty roles. The revised rules apply to taxable years beginning after December 31, 2024. The bill makes the tax deduction rules more precise without altering the deduction amount itself.