House File 2021 - Introduced HOUSE FILE 2021 BY J. TAYLOR and CHAMBERS A BILL FOR An Act exempting from the individual income tax all pay 1 received from the federal government for certain military 2 service in support of the national guard and including 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5092YH (3) 84 aw/sc

H.F. 2021 Section 1. Section 422.7, subsections 40 and 42A, Code 1 Supplement 2011, are amended to read as follows: 2 40. Subtract, to the extent included, active duty pay , 3 including pay for service performed pursuant to 32 U.S.C. § 4 502(f) and 32 U.S.C. § 709(a) and (b), received by a person in 5 the national guard or armed forces military reserve for service 6 performed on or after January 1, 2003, pursuant to military 7 orders related to Operation Iraqi Freedom, Operation New Dawn, 8 Operation Noble Eagle, and Operation Enduring Freedom. 9 42A. Subtract, to the extent included, all pay received by 10 the taxpayer from the federal government for military service 11 performed while on active duty status in the armed forces, the 12 armed forces military reserve, or the national guard , including 13 pay for service performed pursuant to 32 U.S.C. § 502(f) and 32 14 U.S.C. § 709(a) and (b) . 15 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 16 retroactively to January 1, 2012, for tax years beginning on 17 or after that date. 18 EXPLANATION 19 This bill exempts from the individual income tax all 20 pay received by a taxpayer for military service performed 21 in support of the national guard pursuant to 32 U.S.C. § 22 502(f) and 32 U.S.C. § 709(a) and (b). This exempts certain 23 income received by active duty and reserve personnel, certain 24 operational support personnel, and certain dual-status federal 25 technicians. 26 The bill applies retroactively to January 1, 2012, for tax 27 years beginning on or after that date. 28 -1- LSB 5092YH (3) 84 aw/sc 1/ 1