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Minnesota Legislature

Office of the Revisor of Statutes

SF 3458

as introduced - 90th Legislature (2017 - 2018) Posted on 03/16/2018 08:44am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; individual income; modifying the credit for past military
service;amending Minnesota Statutes 2016, section 290.0677, subdivisions 1a, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 290.0677, subdivision 1a, is amended to read:


Subd. 1a.

Credit allowed; past military service.

(a) A qualified individual is allowed
a credit against the tax imposed under this chapter for past military service. The credit equals
deleted text begin $750deleted text endnew text begin $1,000new text end. The credit allowed under this subdivision is reduced by ten percent of adjusted
gross income in excess of deleted text begin$30,000deleted text endnew text begin $50,000new text end, but in no case is the credit less than zero.

(b) For a nonresident or a part-year resident, the credit under this subdivision must be
allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
(e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 290.0677, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given.

(b) "Designated area" means a:

(1) combat zone designated by Executive Order from the President of the United States;

(2) qualified hazardous duty area, designated in Public Law; or

(3) location certified by the U. S. Department of Defense as eligible for combat zone
tax benefits due to the location's direct support of military operations.

(c) "Active military service" means active duty service in any of the United States armed
forces, the National Guard, or reserves.

(d) "Qualified individual" means an individual who has:

(1) met one of the following criteria:

(i) has served at least 20 years in the military;

(ii) has a deleted text beginservice-connected disability rating of 100deleted text endnew text begin 40new text end percent deleted text beginfor a total and permanent
disability
deleted text endnew text begin or greater compensable service-connected disability as adjudicated by the United
States Veterans Administration or by the retirement board of one of the several branches
of the armed forces
new text end; or

(iii) has been determined by the military to be eligible for compensation from a pension
or other retirement pay from the federal government for service in the military, as computed
under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, or 12733; and

(2) separated from military service before the end of the taxable year.

(e) "Adjusted gross income" has the meaning given in section 61 of the Internal Revenue
Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2017.
new text end

Sec. 3. new text beginPURPOSE STATEMENT; TAX EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin This section is intended to fulfill the requirement under
Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
expenditure provide a purpose for the tax expenditure and a standard or goal against which
its effectiveness may be measured.
new text end

new text begin Subd. 2. new text end

new text begin Credit for past military service. new text end

new text begin The provisions of section 1, extending the
credit for past military service to a higher income level and to veterans with a 40 percent
or greater compensable service-connected disability, are intended to provide assistance and
recognition to lower-income and disabled Minnesota veterans. The standard against which
the effectiveness of the credit is to be measured is the number of veterans who claim the
credit as a percentage of all veterans who are eligible.
new text end