Senate Study Bill 1158 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON VETERANS AFFAIRS BILL BY CHAIRPERSON BEALL) A BILL FOR An Act exempting federal retirement pay of a resident received 1 for military service from the state individual income tax 2 and including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2169XC (2) 85 mm/sc
S.F. _____ Section 1. Section 422.7, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 31A. a. Subtract, to the extent included, 3 retirement pay received by a resident taxpayer from the federal 4 government for military service performed in the armed forces, 5 the armed forces military reserve, or national guard. 6 b. The exclusion of retirement pay under this subsection is 7 in addition to any exclusion provided under subsection 31. 8 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 9 retroactively to January 1, 2013, for tax years beginning on 10 or after that date. 11 EXPLANATION 12 This bill exempts from the individual income tax all 13 retirement pay of an Iowa resident from federal military 14 service in the armed forces, the military reserve, or national 15 guard. The exemption is in addition to the general pension 16 exclusion. 17 The bill applies retroactively to January 1, 2013, for tax 18 years beginning on or after that date. 19 -1- LSB 2169XC (2) 85 mm/sc 1/ 1