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IN HB1095
Bill
Status
1/3/2019
Primary Sponsor
Shane Lindauer
Click for details
AI Summary
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Increases Indiana's income tax deduction for active/reserve military service income from the current $5,000 cap to 12 times the monthly basic pay of an E-7 with 9 years of service (as of July 1, 2018)
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Increases the deduction for military retirement and survivor's benefits from the current $6,250 cap to the same E-7 benchmark amount
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Phases in the increased deduction over five years: 20% in 2020, 40% in 2021, 60% in 2022, 80% in 2023, and 100% for taxable years beginning after December 31, 2023
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Allows the full deduction if total qualifying military income falls below the maximum threshold amount
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Effective date of January 1, 2020, applying to taxable years beginning after December 31, 2019
Legislative Description
Income tax deduction for military income. Provides that income received for military service (other than qualified military income) or received as a retirement or a survivor's benefit paid because of an individual's military service is wholly deductible if the amount of the income is less than the specified maximum amount. Increases the maximum amount of the deduction for income received for military service (other than qualified military income) or received as a retirement or a survivor's benefit paid because of an individual's military service. Provides that the increase is phased in over a five year period so that for taxable years beginning after December 31, 2023, the maximum amount of the deduction is equal to 12 times the monthly basic pay received as of July 1, 2018, by a member of the armed forces of the United States who: (1) served at the pay grade of E-7 on July 1, 2018; and (2) had nine years of service as of July 1, 2018. (Current law allows a deduction against the first $5,000 received for military service and a deduction of $6,250 for income received from retirement or survivor benefits.)
Last Action
First reading: referred to Committee on Ways and Means
1/3/2019