SF 2017 (LSB 5141XS (6) 83)

SENATE FILE 2017

BY  SODDERS

A BILL FOR

An Act providing an exemption from the state individual income tax for federal retirement pay received for military service and including a retroactive applicability date 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.  31A.  a.  Subtract, to the extent included, retirement pay received from the federal government for military service performed in the armed forces, armed forces military reserve, or national guard.
   b.  The exclusion of retirement benefits under this subsection is in addition to any exclusion provided under subsection 31.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2010, for tax years beginning on or after that date.
EXPLANATION
   This bill provides for the exclusion of retirement benefits from federal military service in the armed forces, military reserve, or national guard. The exemption is in addition to the general pension exclusion.
   The bill applies retroactively to January 1, 2010, for tax years beginning on or after that date.