SB 329 Summary

• Provides a 100% state income tax deduction for all military service income received by individuals or their surviving spouses effective January 1, 2018.

• Expands the definition of "military service income" to include all income from service in active or reserve components of the armed forces (Army, Navy, Air Force, Coast Guard, Marine Corps, Merchant Marine, Indiana National Guard, or Indiana Air National Guard), including retirement and survivor benefits.

• Repeals the previous $5,000 annual income deduction limit for military service income and removes the age restriction that prevented those under 60 from claiming retirement or survivor benefits.

• Applies to taxable years beginning after December 31, 2017, with an expiration date of July 1, 2021.