HF 2138 (LSB 5344HV (8) 83)

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 income tax certain amounts received from the veterans trust fund and including a retroactive applicability provision.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  46A.  Subtract, to the extent included, amounts received from the veterans trust fund for any of the following items:
   a.  Travel expenses pursuant to section 35A.13, subsection 7, paragraph “a”.
   b.  Unemployment assistance pursuant to section 35A.13, subsection 7, paragraph “c”.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2010, for tax years beginning on or after that date.
EXPLANATION
   The veterans trust fund allows moneys appropriated to the veterans affairs commission to be expended for, among other things, providing travel expenses for wounded veterans and their spouses, if the expenses are directly related to follow-up medical care, and unemployment assistance during a period of unemployment, if the unemployment is due to prolonged physical or mental illness or disability resulting from military service. 
   This bill exempts these benefits from the individual income tax. 
   The bill applies retroactively to January 1, 2010, for tax years beginning on or after that date.