IN HB1268

Phases in an increase to Indiana's military income tax deduction from $5,000 to $6,000 for taxable year 2014, then to $7,000 for taxable years beginning after December 31, 2014

Applies to income from active or reserve service in the armed forces, including the army, navy, air force, coast guard, marine corps, merchant marine, Indiana army national guard, and Indiana air national guard

Eliminates the requirement that individuals must be at least 60 years old to claim the deduction for military retirement or survivor's benefits

Individuals who already subtract qualified military income under IC 6-3-1-3.5(a)(21) cannot also claim this deduction for the same income

Effective date of January 1, 2014, applying to taxable years beginning after December 31, 2013