Senate File 284

                                       SENATE FILE       
                                       BY  WARNSTADT, COURTNEY, BEALL,
                                           STEWART, HOLVECK, BOLKCOM,
                                           KREIMAN, RAGAN, GRONSTAL,
                                           QUIRMBACH, CONNOLLY, DVORSKY,
                                           BLACK, SENG, and DEARDEN


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the deduction for expenses incurred in the
  2    performance of military service in the national guard and
  3    military reserve and for student loan repayments received
  4    while on active duty in the national guard, military reserve,
  5    or regular armed forces and including a retroactive
  6    applicability date provision.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  8 TLSB 1478XS 80
  9 mg/sh/8

PAG LIN

  1  1    Section 1.  Section 422.7, Code 2003, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  39.  Subtract, to the extent not already
  1  4 excluded, the amount of expenses incurred by the taxpayer for
  1  5 the performance of military service on active or inactive
  1  6 status in the national guard or armed forces reserve.
  1  7    NEW SUBSECTION.  40.  Subtract, to the extent included,
  1  8 military student loan repayments received by the taxpayer
  1  9 serving on active duty in the national guard or armed forces
  1 10 reserve or on active duty status in the armed forces.
  1 11    Sec. 2.  Section 422.9, subsection 2, Code 2003, is amended
  1 12 by adding the following new paragraph:
  1 13    NEW PARAGRAPH.  j.  If the taxpayer has a deduction for
  1 14 miscellaneous expenses under section 67 of the Internal
  1 15 Revenue Code, the taxpayer shall recompute for the purposes of
  1 16 this subsection the amount of the deduction under section 67
  1 17 by excluding from the expenses, the amount subtracted under
  1 18 section 422.7, subsection 39.
  1 19    Sec. 3.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 20 retroactively to January 1, 2003, for tax years beginning on
  1 21 or after that date.
  1 22                           EXPLANATION
  1 23    This bill allows a deduction for the total amount of
  1 24 expenses incurred in the performance of military service in
  1 25 the national guard or armed forces reserve while on active or
  1 26 inactive status.
  1 27    The bill also exempts military student loan repayments
  1 28 received by the taxpayer serving on active duty in the
  1 29 national guard, armed forces reserve, or regular armed forces.
  1 30    The bill applies retroactively to January 1, 2003, for tax
  1 31 years beginning on or after that date.
  1 32 LSB 1478XS 80
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