This bill provides a subtraction of taxable Social Security benefits for purposes of calculating Minnesota taxable income, beginning in tax year 2017. The subtraction is allowed in the following amounts, whichever is less:

• Married couples filing jointly: $1,600 or amount of taxable benefits;
• Single or head-of-household filer: $1,250 or amount of taxable benefits; and
• Married couples filing separately: $800 or amount of taxable benefits.

The bill also provides a corresponding subtraction for purposes of calculating Minnesota alternative minimum tax (AMT).