Senate File 106 - Introduced SENATE FILE 106 BY BACON , BOETTGER , JOHNSON , HAMERLINCK , ZAUN , CHELGREN , ERNST , GREINER , BERTRAND , SORENSON , WARD , BARTZ , and FEENSTRA A BILL FOR An Act providing an exemption from the computation of the 1 individual state income tax of all pay received for 2 active duty military service and including retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1110XS (2) 84 tw/sc

S.F. 106 Section 1. Section 422.7, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 42A. 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, 2011, 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, 2011, for tax 17 years beginning on or after that date. 18 -1- LSB 1110XS (2) 84 tw/sc 1/ 1