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 1 33 mg/sh/8 1 34 1 35