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IN SB0419

Bill

Status

Introduced

1/14/2019

Primary Sponsor

Andy Zay

Click for details

Origin

Senate

2019 Regular Session

AI Summary

  • Phases out the $6,250 cap on Indiana income tax deductions for military retirement and survivor's benefits over four years, reaching full exemption by 2022

  • Deduction phase-in schedule: 25% of benefits above $6,250 deductible in 2019, 50% in 2020, 75% in 2021, and 100% after December 31, 2021

  • Applies to veterans and surviving spouses who received retirement or survivor's benefits from service in active or reserve components of the U.S. armed forces

  • Maintains separate $5,000 deduction for active military service income (excluding retirement benefits)

  • Effective January 1, 2019 (retroactive), with emergency declaration for immediate implementation

Legislative Description

Income tax exemption for veterans. For taxable years beginning after 2018, phases out the limitation on the deduction from an individual's adjusted gross income for income from retirement or survivor's benefits received by the individual, or the individual's surviving spouse, for the individual's service in an active or reserve component of the armed forces of the United States.

Last Action

First reading: referred to Committee on Tax and Fiscal Policy

1/14/2019

Committee Referrals

Tax and Fiscal Policy1/14/2019

Full Bill Text

No bill text available