HB 1205 Summary

• Expands Indiana income tax exemption for military pay to include members of active components of the United States armed forces, effective January 1, 2013 (retroactive).

• Maintains existing exemption for National Guard and reserve component members serving on active duty under involuntary orders, mobilization/deployment, or when units are federalized.

• Amends IC 6-3-1-34 to define "qualified military income" to encompass wages from both active component service and applicable reserve/National Guard service periods.

• Applies to taxable years beginning after December 31, 2012.