1.1 	A bill for an act
1.2 	relating to taxation; income; military service credit; modifying income-based 
1.3 	reduction;amending Minnesota Statutes 2010, section 290.0677, subdivision 1a.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 290.0677, subdivision 1a, is amended to 
1.6 	read:
1.7 		Subd. 1a.Credit allowed; past military service. (a) A qualified individual is 
1.8 	allowed a credit against the tax imposed under this chapter for past military service. The 
1.9 	credit equals $750. The credit allowed under this subdivision is reduced by ten five percent 
1.10 	of adjusted gross income in excess of $30,000, but in no case is the credit less than zero.
1.11 	(b) For a nonresident or a part-year resident, the credit under this subdivision 
1.12 	must be allocated based on the percentage calculated under section 290.06, subdivision 
1.13 	2c, paragraph (e).

1.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.15 	December 31, 2011.