Senate File 2037 - Introduced



                                       SENATE FILE       
                                       BY  MILLER


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

                                      A BILL FOR

  1 An Act exempting military duty compensation, benefits,
  2    allowances, and retirement pay received from the federal
  3    government by members of the armed forces from the individual
  4    income tax and including a retroactive applicability date
  5    provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 5837SS 81
  8 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 422.7, Code Supplement 2005, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  45.  Subtract, to the extent included,
  1  4 compensation, allowances, and benefits, including retirement
  1  5 benefits, received from the federal government for military
  1  6 service performed in the armed forces, armed forces military
  1  7 reserves, or national guard.
  1  8    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1  9 retroactively to January 1, 2006, for tax years beginning on
  1 10 or after that date.
  1 11                           EXPLANATION
  1 12    This bill exempts from income tax compensation, allowances,
  1 13 and benefits, including retirement benefits, received from the
  1 14 federal government for military service in the armed forces,
  1 15 armed forces military reserve, or national guard.
  1 16    The bill applies retroactively to January 1, 2006, for tax
  1 17 years beginning on or after that date.
  1 18 LSB 5837SS 81
  1 19 mg:rj/sh/8