Senate File 8 - Introduced



                                       SENATE FILE       
                                       BY  KREIMAN


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

                                      A BILL FOR

  1 An Act exempting from state individual income tax any death
  2    benefits received as a result of the death of a member of the
  3    armed forces in or as a result of a terroristic or military
  4    action and including an effective and retroactive
  5    applicability date provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 1620XS 81
  8 mg/pj/5

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  44.  Subtract, to the extent included, the
  1  4 amount of death benefits received by the taxpayer and
  1  5 taxpayer's spouse or dependent as a result of the death of a
  1  6 member of the armed forces of the United States if the death
  1  7 occurred while serving in or as a result of wounds, disease,
  1  8 or injury while serving in a terroristic or military action as
  1  9 defined in section 692(c)(2) of the Internal Revenue Code.
  1 10    Sec. 2.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  1 11 deemed of immediate importance, takes effect upon enactment
  1 12 and applies retroactively to January 1, 2005, for tax years
  1 13 beginning or on after that date.
  1 14                           EXPLANATION
  1 15    This bill exempts from state individual income tax death
  1 16 benefits received as a result of the death of a member of the
  1 17 United States armed forces which occurred in or as a result of
  1 18 a terroristic or military action.
  1 19    The bill takes effect upon enactment and applies
  1 20 retroactively beginning with the 2005 tax year.
  1 21 LSB 1620XS 81
  1 22 mg/pj/5