HB 5801 Summary

• Increases retirement and pension benefit deduction limits for persons born 1946-1952, raising limits from $20,000/$40,000 to $30,000/$60,000 for single/joint returns for tax years beginning after December 31, 2016.

• Increases deduction limits for persons born 1946-1952 receiving government pensions not covered by Social Security, raising limits from $35,000/$55,000 to $40,000/$70,000 for single/joint returns beginning after December 31, 2016.

• Increases deduction limits for persons born after 1952 aged 62-66 receiving non-Social Security government pensions, raising limits from $15,000 to $20,000 for single returns and from $15,000 to $20,000/$40,000 for joint returns beginning after December 31, 2016.

• Reduces deduction limits for persons born after 1952 from unlimited to $10,000/$20,000 for single/joint returns, with increase to $30,000/$60,000 at age 67, effective after December 31, 2016.

• Adds annual inflation adjustments to deduction limits beginning in 2018 based on U.S. consumer price index; clarifies definition of oil and gas subject to severance tax.