Senate Bill 417 Summary

• Adds a new individual income tax deduction for investment interest paid on indebtedness on real property that is not a qualified residence, as allowed under federal tax law.

• Removes outdated individual income tax adjustments related to deductions for married couples filing joint returns before 1987 and interest excluded under prior federal law before 1985.

• Renumbers and reorganizes existing individual income tax deductions in IC 6-3-1-3.5 to consolidate provisions, reducing numbered subsections from 34 to 33.

• Updates cross-references in IC 6-3-2-4 and IC 6-3.1-20-4 to reflect the renumbered deduction provisions for military income and property tax credits.

• Effective January 1, 2012, for taxable years beginning after December 31, 2011.