IN HB1112

Increases the military income tax deduction in three phases: $5,000 for taxable years beginning in 2014, $6,000 for taxable years beginning in 2015, and $7,000 for taxable years beginning after December 31, 2015.

Removes the minimum age requirement (previously 60 years old) for individuals to claim a deduction for military retirement or survivor's benefits income.

Defines "military service related income" to include retirement or survivor's benefits from service in active or reserve components of U.S. armed forces, including Army, Navy, Air Force, Coast Guard, Marine Corps, Merchant Marine, and Indiana National Guard units.

Effective retroactively to January 1, 2014, applying to all taxable years beginning after December 31, 2013.

Declares an emergency for the act to facilitate immediate implementation.