Senate Bill 264 Summary

• Exempts military retirement pension income from Indiana's adjusted gross income tax by allowing subtraction of retirement pension income received for service in any branch or reserve component of the United States military that is included in federal adjusted gross income.

• Effective for taxable years beginning after December 31, 2013.

• Clarifies that individuals claiming the military retirement pension income deduction under the new provision cannot also claim the existing deduction for military service income under IC 6-3-2-4.

• Modifies IC 6-3-1-3.5 to add subsection (47) establishing the military pension subtraction and amends IC 6-3-2-4 to add subsection (c) preventing double deductions.