House File 257 - Introduced HOUSE FILE 257 BY SORENSEN A BILL FOR An Act exempting from the individual income tax all pay 1 received from the federal government for certain military 2 service in support of the national guard and including 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2166YH (1) 89 jm/jh

H.F. 257 Section 1. Section 422.7, subsection 42A, Code 2021, is 1 amended to read as follows: 2 42A. Subtract, to the extent included, all pay received by 3 the taxpayer from the federal government for military service 4 performed while on active duty status in the armed forces, the 5 armed forces military reserve, or the national guard , including 6 pay for service performed pursuant to 32 U.S.C. §502(f) and 32 7 U.S.C. §709(a) and (b) . 8 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 9 retroactively to January 1, 2021, for tax years beginning on 10 or after that date. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill exempts from the individual income tax all pay 15 received by a taxpayer from the federal government for military 16 service performed in support of the national guard pursuant to 17 32 U.S.C. §502(f) and 32 U.S.C. §709(a) and (b). This exempts 18 certain income received by active duty and reserve personnel, 19 certain operational support personnel, and certain dual-status 20 federal technicians. 21 The bill applies retroactively to January 1, 2021, for tax 22 years beginning on or after that date. 23 -1- LSB 2166YH (1) 89 jm/jh 1/ 1