Senate Study Bill 3015



                                    SENATE FILE       
                                    BY  (PROPOSED COMMITTEE ON VETERANS
                                        AFFAIRS BILL BY CHAIRPERSON BEALL)

                                         A BILL FOR

     1 An Act exempting from the individual income tax all pay
     2    received from the federal government for military service
     3    performed while on active duty and including retroactive
     4    applicability provisions.
     5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

PAG LIN



  1  1    Section 1.  Section 422.7, Code Supplement 2009, is amended
  1  2 by adding  the following new subsection:
  1  3 NEW SUBSECTION.  41.  Subtract, to the extent included,
  1  4 all pay received by the taxpayer from the federal government
  1  5 for military service performed while on active duty status in
  1  6 the armed forces, the armed forces military reserve, or the
  1  7 national guard.
  1  8    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1  9 retroactively to January 1, 2010, for tax years beginning on
  1 10 or after that date.
  1 11                           EXPLANATION
  1 12    This bill exempts from the individual income tax all pay
  1 13 received by a taxpayer from the federal government for  military
  1 14 service performed while on active duty status in the  armed
  1 15 forces, the armed forces military reserve, or the  national
  1 16 guard.
  1 17    The bill applies retroactively to January 1, 2010, for tax
  1 18 years beginning on or after that date.
       LSB 5677SC (1) 83
       tw/sc