Senate Study Bill 3015 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON VETERANS AFFAIRS BILL BY CHAIRPERSON BEALL) A BILL FOR An Act exempting from the individual income tax all pay 1 received from the federal government for military service 2 performed while on active duty and including retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5677SC (1) 83 tw/sc

S.F. _____ Section 1. Section 422.7, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 41. Subtract, to the extent included, 3 all pay received by the taxpayer from the federal government 4 for military service performed while on active duty status in 5 the armed forces, the armed forces military reserve, or the 6 national guard. 7 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 8 retroactively to January 1, 2010, for tax years beginning on 9 or after that date. 10 EXPLANATION 11 This bill exempts from the individual income tax all pay 12 received by a taxpayer from the federal government for military 13 service performed while on active duty status in the armed 14 forces, the armed forces military reserve, or the national 15 guard. 16 The bill applies retroactively to January 1, 2010, for tax 17 years beginning on or after that date. 18 -1- LSB 5677SC (1) 83 tw/sc 1/ 1