SENATE FILE 75

BY  ANDERSON, BERTRAND, SMITH, ERNST, JOHNSON, and KAPUCIAN

A BILL FOR

An Act excluding from the computation of net income under the individual income tax active duty pay received for service in Operation New Dawn and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 422.7, subsection 40, Code 2011, is amended to read as follows:
   40.  Subtract, to the extent included, active duty pay received by a person in the national guard or armed forces military reserve for service performed on or after January 1, 2003, pursuant to military orders related to Operation Iraqi Freedom, Operation New Dawn, Operation Noble Eagle, and Operation Enduring Freedom.
   Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2011, for tax years beginning on or after that date.
EXPLANATION
   This bill exempts from the computation of net income active duty military pay received by a person in the national guard or armed forces military reserve for service performed in Operation New Dawn, the name used by the United States government to refer to certain operations in Iraq.
   The bill applies retroactively to January 1, 2011, for tax years beginning on or after that date.