DE SB201

Phases in an increased state income tax exclusion for U.S. military pensions over three years: $15,000 for tax year 2024, $20,000 for 2025, and $25,000 for 2026 and beyond

Applies the military pension exclusion to recipients of all ages, eliminating the previous distinction between those under 60 and those 60 or older

Military pensioners may choose the greater of either the standard pension exclusion ($2,000 for under 60; $12,500 for 60+) or the new military pension exclusion

Defines "United States military pension" as pension income from service in the U.S. armed forces, including the National Guard

Maintains existing pension exclusions for non-military pensioners at $2,000 for those under 60 and $12,500 for those 60 or older