The number of military retirees eligible to receive individual income tax credits would expand under a bill approved by the House Veterans Services Division Feb. 13.
Current law grants military retirees with at least 20 years of service or who are 100 percent totally and permanently disabled up to a $750 individual income tax credit. Sponsored by Rep. Bob Dettmer (R-Forest Lake),
HF1452 would also allow veterans to qualify if they are medically discharged with fewer than 20 years of service and if they qualify for a military pension.
Due to the downsizing of the U.S. military, some veterans are forced to retire prior to 20 years of service. So, those who receive a pension under the operative military reduction order would also qualify for the tax credit. Spouses of deceased veterans who receive a military pension under the Survivor Benefit Payment program would also be eligible. The credit would be effective beginning with the 2012 tax year.
About 1,100 of the 14,000 military retirees may qualify for the credit, according to Ralph Donais, chairman of the United Veterans Legislative Council of Minnesota.
The bill was referred to the House Taxes Committee. Sen. John Carlson (R-Bemidji) sponsors
SF1643, a companion bill awaiting action by the Senate State Government Innovation and Veterans Committee.
The division also approved and sent to the tax committee
HF1820, sponsored by Dettmer, which would raise the income tax credit eligibility from those who earn less than $37,500 to $45,000. However, the credit would be incrementally reduced, adjusting for the rise in gross income level until the maximum was met. Sen. Jeremy Miller (R-Winona) sponsors
SF1794, a companion bill awaiting action by the Senate Taxes Committee.
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Published 4/6/2012