House File 399 - Introduced HOUSE FILE BY WINDSCHITL, MAY, KAUFMANN, SCHULTZ, STRUYK, HUSEMAN, DOLECHECK, DEYOE, SODERBERG, DE BOEF, and SORENSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act exempting retired veterans from the imposition of the 2 individual income tax and including a retroactive 3 applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1750YH 83 6 tw/mg:sc/5 PAG LIN 1 1 Section 1. Section 422.5, Code 2009, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 2A. However, the tax shall not be imposed 1 4 on a resident or nonresident who is at least sixty=five years 1 5 old on December 31 of the tax year and who has performed 1 6 active duty military service in the United States armed 1 7 forces, armed forces military reserve, or national guard, and 1 8 who has been honorably discharged. In the case of married 1 9 persons filing jointly, the exemption from tax under this 1 10 subsection only applies to the income of the spouse who 1 11 qualifies as a veteran. 1 12 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 1 13 retroactively to January 1, 2009, for tax years beginning on 1 14 or after that date. 1 15 EXPLANATION 1 16 This bill exempts from the imposition of the individual 1 17 income tax veterans who have performed active duty military 1 18 service in the armed forces, armed forces military reserve, or 1 19 the national guard and who have been honorably discharged. 1 20 If married persons file jointly, the exemption of income 1 21 from tax only applies to the income of the veteran spouse. 1 22 The bill applies retroactively to January 1, 2009, for tax 1 23 years beginning on or after that date. 1 24 LSB 1750YH 83 1 25 tw/mg:sc/5