S.F. 1699 extends income tax subtractions for military pay and military retirement pay to federal civilian employees who are military technicians.

Section 1. Subdivision 11. National Guard and reserve compensation. Expands the definition of a subtraction to include compensation paid to federal civilian employees who are military technicians. Expands the definition of active service to include service performed by federal civilian employees who are military technicians. This section is effective beginning in taxable year 2017.

Section 2. Subdivision 21. Military service pension; retirement pay. Expands the definition of a subtraction to include pension and retirement payments paid to federal civilian employees who are military technicians. This section is effective beginning in taxable year 2017.

Section 3. Purpose statement; tax expenditures. The purpose of expanding the military pay and military retirement pay subtractions to military technicians is to provide recognition for their service comparable to that provided to other Minnesota military service members and to assist in retaining soldiers as military technicians.