House File 2138 - Introduced HOUSE FILE 2138 BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO HSB 540) A BILL FOR An Act exempting from the computation of the state individual 1 income tax certain amounts received from the veterans trust 2 fund and including a retroactive applicability provision. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5344HV (8) 83 tw/sc

H.F. 2138 Section 1. Section 422.7, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 46A. Subtract, to the extent included, 3 amounts received from the veterans trust fund for any of the 4 following items: 5 a. Travel expenses pursuant to section 35A.13, subsection 6 7, paragraph “a” . 7 b. Unemployment assistance pursuant to section 35A.13, 8 subsection 7, paragraph “c” . 9 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 10 retroactively to January 1, 2010, for tax years beginning on 11 or after that date. 12 EXPLANATION 13 The veterans trust fund allows moneys appropriated to 14 the veterans affairs commission to be expended for, among 15 other things, providing travel expenses for wounded veterans 16 and their spouses, if the expenses are directly related to 17 follow-up medical care, and unemployment assistance during a 18 period of unemployment, if the unemployment is due to prolonged 19 physical or mental illness or disability resulting from 20 military service. 21 This bill exempts these benefits from the individual income 22 tax. 23 The bill applies retroactively to January 1, 2010, for tax 24 years beginning on or after that date. 25 -1- LSB 5344HV (8) 83 tw/sc 1/ 1