Senate File 165 - Introduced SENATE FILE BY BARTZ Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an exemption from the state individual income 2 tax for retirement pay received from the federal government 3 for military service and including a retroactive applicability 4 date provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2226SS 83 7 tw/mg:sc/14 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. 31A. a. Subtract, to the extent 1 4 included, retirement pay received from the federal government 1 5 for military service performed in the armed forces, armed 1 6 forces military reserve, or national guard. 1 7 b. The exclusion of retirement benefits under this 1 8 subsection is in addition to any exclusion provided under 1 9 subsection 31. 1 10 Sec. 2. RETROACTIVE APPLICABILITY DATE. This Act applies 1 11 retroactively to January 1, 2009, for tax years beginning on 1 12 or after that date. 1 13 EXPLANATION 1 14 This bill provides for the exclusion of retirement benefits 1 15 from federal military service in the armed forces, military 1 16 reserve, or national guard. The exemption is in addition to 1 17 the general pension exclusions. 1 18 The bill applies retroactively to January 1, 2009, for tax 1 19 years beginning on or after that date. 1 20 LSB 2226SS 83 1 21 tw/mg:sc/14