Summary of Senate Bill No. 1

• Increases personal exemption from $3,700 to $5,000 beginning January 1, 2022, and adjusts exemptions annually based on Consumer Price Index starting in 2023.

• Increases maximum retirement or pension benefit deductions for senior citizens from $42,240 (single) and $84,480 (joint) to $56,961 (single) and $113,922 (joint), with annual CPI adjustments beginning in 2023.

• Increases senior citizen deduction for interest, dividends, and capital gains from $9,420 (single) and $18,840 (joint) to $12,697 (single) and $25,394 (joint), with annual CPI adjustments beginning in 2023.

• Creates new election for taxpayers to deduct retirement or pension benefits without age-based limitations and restrictions for tax years beginning January 1, 2023 and after.

• Increases school aid fund deposit from 1.012% to 1.045% of income tax gross collections beginning October 1, 2023.