Foreign service pension taxable income subtraction

SF 211 creates a tax reduction for Minnesota taxpayers receiving U.S. foreign service pensions. It allows a subtraction from taxable income equal to the pension amount multiplied by the ratio of foreign service years to total civil service years. This specifically affects Minnesota residents who receive retirement pay from the federal government for service in the U.S. Foreign Service under Title 22, Section 4071 of the U.S. Code. The provision applies to tax returns for years beginning after December 31, 2024.