House File 229 - Introduced HOUSE FILE 229 BY CHAMBERS A BILL FOR An Act excluding from the computation of net income military 1 retirement benefits of certain retired veterans and 2 including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2067YH (4) 84 tw/sc

H.F. 229 Section 1. Section 422.7, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 41. Subtract, to the extent included, the 3 amount of military retirement benefits received by a retired 4 veteran. For purposes of this subsection, “retired veteran” 5 means a person who has performed active duty military service 6 in the United States armed forces, armed forces military 7 reserve, or national guard and who performed such service for a 8 period of twenty years or more. 9 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 10 retroactively to January 1, 2011, for tax years beginning on 11 or after that date. 12 EXPLANATION 13 This bill provides an exclusion from the computation of net 14 income (also known as an above-the-line deduction) for the 15 military retirement benefits received by retired veterans. 16 To qualify for the deduction, a taxpayer must have performed 17 active duty military service in the United States armed forces, 18 armed forces military reserve, or national guard and have 19 performed such service for a period of twenty years or more. 20 The bill applies retroactively to January 1, 2011, for tax 21 years beginning on or after that date. 22 -1- LSB 2067YH (4) 84 tw/sc 1/ 1