Senate File 400 - Introduced
SENATE FILE
BY LAMBERTI
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for income tax credits for the cost of
2 purchasing life insurance coverage by certain members of the
3 national guard and the reserves, providing for death benefits
4 for certain deceased members of the national guard and the
5 reserves, making appropriations, and providing for effective
6 and retroactive applicability dates.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
8 TLSB 1967XS 81
9 av/gg/14
PAG LIN
1 1 Section 1. NEW SECTION. 29A.27A MILITARY SERVICE LIFE
1 2 INSURANCE TAX CREDITS AND DEATH BENEFITS == APPROPRIATION.
1 3 1. A member of the national guard or reserve forces of the
1 4 United States on active duty in the military service of this
1 5 state or of the United States, who purchases a life insurance
1 6 policy that is obtained through the federal servicemembers'
1 7 group life insurance program pursuant to 38 U.S.C. } 1965 et
1 8 seq., as amended, during the member's period of active duty,
1 9 may claim a tax credit that equals one hundred percent of the
1 10 cost to the member of purchasing such life insurance coverage
1 11 during the member's period of active duty.
1 12 2. Each member of the national guard or reserve forces of
1 13 the United States who died on or after January 1, 2003, and
1 14 prior to the effective date of this Act, while on active duty
1 15 in the military service of this state or of the United States
1 16 pursuant to military orders related to Operation Iraqi
1 17 Freedom, Operation Noble Eagle, or Operation Enduring Freedom
1 18 shall have a death benefit paid on behalf of that member by
1 19 the state. This death benefit shall be paid in an amount up
1 20 to and including two hundred fifty thousand dollars or so much
1 21 thereof as is necessary to make the total death benefit
1 22 payable on behalf of that member, including any amount
1 23 received on behalf of that member under a life insurance
1 24 policy obtained through the federal servicemembers' group life
1 25 insurance program pursuant to 38 U.S.C. } 1965 et seq., as
1 26 amended, equal to the amount of two hundred fifty thousand
1 27 dollars.
1 28 3. The adjutant general shall adopt rules necessary to
1 29 determine eligibility for and to administer the death benefit
1 30 program.
1 31 4. The department of revenue shall adopt rules necessary
1 32 to determine eligibility for and to administer the military
1 33 service life insurance tax credit program.
1 34 5. This section is not intended to alter, amend, or change
1 35 the eligibility or applicability requirements of the federal
2 1 servicemembers' group life insurance program pursuant to 38
2 2 U.S.C. } 1965 et seq., as amended, or any rights,
2 3 responsibilities, or benefits thereunder.
2 4 6. The cost of death benefits payable pursuant to this
2 5 section shall be paid out of moneys in the state treasury not
2 6 otherwise appropriated.
2 7 Sec. 2. NEW SECTION. 422.11K MILITARY SERVICE LIFE
2 8 INSURANCE TAX CREDIT.
2 9 The taxes imposed under this division, less the credits
2 10 allowed under sections 422.12 and 422.12B, shall be reduced by
2 11 a military service life insurance tax credit as allowed under
2 12 section 29A.27A.
2 13 Any credit in excess of the tax liability shall be
2 14 refunded. In lieu of claiming a refund, a taxpayer may elect
2 15 to have the overpayment shown on the taxpayer's final,
2 16 completed return credited to the tax liability for the
2 17 following taxable year.
2 18 Sec. 3. EFFECTIVE DATES AND RETROACTIVE APPLICABILITY
2 19 DATES. This Act, being deemed of immediate importance, takes
2 20 effect upon enactment and applies retroactively to January 1,
2 21 2005, for tax years beginning on or after that date.
2 22 EXPLANATION
2 23 This bill provides for income tax credits for the cost of
2 24 purchasing life insurance coverage by certain members of the
2 25 military who are on active duty and for the payment of a death
2 26 benefit on behalf of certain members of the military who died.
2 27 The bill provides that a member of the national guard or
2 28 reserve forces of the United States on active duty in the
2 29 military service of this state or of the United States is
2 30 eligible to claim a refundable tax credit for the yearly
2 31 amount paid by the member for the purchase of a life insurance
2 32 policy obtained through the federal servicemembers' group life
2 33 insurance program during the member's period of active duty.
2 34 The bill also provides that a death benefit shall be paid
2 35 by the state on behalf of each member of the national guard or
3 1 reserve forces of the United States who died on or after
3 2 January 1, 2003, and prior to the effective date of the bill,
3 3 while on active duty pursuant to military orders related to
3 4 Operation Iraqi Freedom, Operation Noble Eagle, or Operation
3 5 Enduring Freedom. The bill provides that the death benefit
3 6 shall be paid by the state in an amount up to and including
3 7 $250,000 or so much thereof as is necessary to make the total
3 8 death benefit payable on behalf of the member, including any
3 9 amount received on behalf of the member from a federal
3 10 servicemembers' group life insurance policy, equal to the
3 11 amount of $250,000.
3 12 The bill provides that the adjutant general shall adopt
3 13 rules necessary to determine eligibility for and to administer
3 14 the death benefit program. The bill provides that the
3 15 department of revenue shall adopt rules necessary to determine
3 16 eligibility for and to administer the tax credit program.
3 17 The bill does not alter, amend, or change the eligibility
3 18 or applicability requirements of the federal servicemembers'
3 19 group life insurance program.
3 20 The bill provides that the cost of death benefits payable
3 21 pursuant to the bill is appropriated out of the general fund
3 22 of the state.
3 23 The bill takes effect upon enactment and applies
3 24 retroactively to January 1, 2005, for tax years beginning on
3 25 or after that date.
3 26 LSB 1967XS 81
3 27 av:rj/gg/14.3