Senate File 373 - Introduced SENATE FILE 373 BY ERNST A BILL FOR An Act providing an exemption from the computation of the 1 individual state income tax of all pay received for military 2 service and including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1881XS (2) 84 tw/sc

S.F. 373 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, all 3 pay received by the taxpayer for military service, including 4 training, in the armed forces, the armed forces military 5 reserve, or the national guard. 6 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 7 retroactively to January 1, 2011, for tax years beginning on 8 or after that date. 9 EXPLANATION 10 This bill exempts from the individual income tax all 11 pay received by a taxpayer for military service, including 12 training, in the armed forces, the armed forces military 13 reserve, or the national guard. 14 The bill applies retroactively to January 1, 2011, for tax 15 years beginning on or after that date. 16 -1- LSB 1881XS (2) 84 tw/sc 1/ 1