IN SB0137

Provides a 100% Indiana income tax deduction for federal civil service annuity income received by an individual or their surviving spouse, beginning in taxable year 2014

Phases in the deduction over 2010-2013: 20% deduction in 2010, 40% in 2011, 60% in 2012, and 80% in 2013

During the phase-in period (2010-2013), guarantees a minimum deduction of the lesser of actual annuity income or $12,000, whichever calculation method produces the greater deduction

Eliminates the previous requirement that recipients be at least 62 years of age to qualify for the deduction

Takes effect retroactively to January 1, 2010 and is declared an emergency measure