IN HB1422

Expands the individual income tax exemption to include military pay earned by members of active components of the armed forces of the United States, effective January 1, 2014 (retroactive).

Repeals the previous definition of "qualified military income" that limited the exemption to National Guard and reserve component members serving on active duty.

Adds four new methods for veterans to prove Indiana residency for resident tuition purposes: voter registration, Indiana driver's license or state ID, motor vehicle registration, employment in Indiana, and bank accounts at Indiana financial institutions.

Applies to taxable years beginning after December 31, 2013, with the new residency provisions effective July 1, 2014.

Establishes a 12-month deadline for veterans to provide proof of Indiana residency to state educational institutions or face potential charges for the difference between resident and nonresident tuition rates.