House File 162 - Introduced



                                       HOUSE FILE       
                                       BY  MAY


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

                                      A BILL FOR

  1 An Act excluding from the individual income tax the retirement
  2    pay of certain veterans of the armed forces and including a
  3    retroactive applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1413HH 83
  6 tw/mg:sc/8

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2009, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  23.  a.  Subject to paragraph "b",
  1  4 subtract, to the extent included, retirement pay received from
  1  5 the federal government for military service performed in the
  1  6 armed forces, armed forces military reserve, or national
  1  7 guard.
  1  8    b.  The amount subtracted pursuant to paragraph "a" is
  1  9 either of the following:
  1 10    (1)  One=half the amount of retirement pay if the taxpayer
  1 11 has been honorably discharged and currently resides in the
  1 12 state.
  1 13    (2)  The full amount of retirement pay if the taxpayer has
  1 14 been honorably discharged, currently resides in the state, and
  1 15 was employed at any time during the tax year as a teacher in a
  1 16 geographic area or subject area currently designated as
  1 17 experiencing teacher shortages by the department of education
  1 18 pursuant to section 261.112, subsection 2, or was employed at
  1 19 any time during the tax year in a position determined by the
  1 20 department of economic development to meet the needs of Iowa
  1 21 employers pursuant to section 15.108, subsection 6.
  1 22    c.  The exclusion of retirement pay under this subsection
  1 23 is in addition to any exclusion provided under subsection 31.
  1 24    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 25 retroactively to January 1, 2009, for tax years beginning on
  1 26 or after that date.
  1 27                           EXPLANATION
  1 28    This bill excludes from the individual income tax one=half
  1 29 of the amount of an honorably discharged veteran's retirement
  1 30 pay if the veteran resides in the state, and the full amount
  1 31 of the retirement pay if the veteran is employed as a teacher
  1 32 in a geographic area or subject area currently designated as a
  1 33 teacher shortage area by the department of education or is
  1 34 employed in a position determined by the department of
  1 35 economic development as meeting certain workforce needs of
  2  1 Iowa employers.
  2  2    The bill applies retroactively to January 1, 2009, for tax
  2  3 years beginning on or after that date.
  2  4 LSB 1413HH 83
  2  5 tw/mg:sc/8