Senate File 2017 - Introduced SENATE FILE 2017 BY SODDERS A BILL FOR An Act providing an exemption from the state individual income 1 tax for federal retirement pay received for military service 2 and including a retroactive applicability date provision. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5141XS (6) 83 tw/sc

S.F. 2017 Section 1. Section 422.7, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 31A. a. Subtract, to the extent included, 3 retirement pay received from the federal government for 4 military service performed in the armed forces, armed forces 5 military reserve, or national guard. 6 b. The exclusion of retirement benefits under this 7 subsection is in addition to any exclusion provided under 8 subsection 31. 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 This bill provides for the exclusion of retirement benefits 14 from federal military service in the armed forces, military 15 reserve, or national guard. The exemption is in addition to 16 the general pension exclusion. 17 The bill applies retroactively to January 1, 2010, for tax 18 years beginning on or after that date. 19 -1- LSB 5141XS (6) 83 tw/sc 1/ 1