Bill Text: IN HB1267 | 2013 | Regular Session | Introduced

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Bill Title: Deduction for military retirement pension income.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2013-01-15 - Representatives Crouch, Messmer and Baird added as coauthors [HB1267 Detail]

Download: Indiana-2013-HB1267-Introduced.html

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Introduced Version

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HOUSE BILL No. 1267

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DIGEST OF INTRODUCED BILL

Citations Affected: IC 6-3-2.

Synopsis: Deduction for military retirement pension income. Phases in a deduction for military retirement pension income from the adjusted gross income tax. Provides that an individual who claims a deduction for military retirement pension income may not claim the income tax deduction generally allowed for military income.

Effective: January 1, 2014.

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McNamara

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    January 14, 2013, read first time and referred to Committee on Ways and Means.

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Introduced

First Regular Session 118th General Assembly (2013)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

HOUSE BILL No. 1267

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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3-2-4; (13)IN1267.1.1. -->     SECTION 1. IC 6-3-2-4, AS AMENDED BY P.L.6-2012, SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 4. (a) Each taxable year, an individual, or the individual's surviving spouse, is entitled to an adjusted gross income tax deduction for the first five thousand dollars ($5,000) of income, including retirement or survivor's benefits, received during the taxable year 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, including the army, navy, air force, coast guard, marine corps, merchant marine, Indiana army national guard, or Indiana air national guard. However, a person who is less than sixty (60) years of age on the last day of the person's taxable year, is not, for that taxable year, entitled to a deduction under this section for retirement or survivor's benefits.
    (b) An individual whose qualified military income is subtracted from the individual's federal adjusted gross income under IC 6-3-1-3.5(a)(21) for Indiana individual income tax purposes is not,

for that taxable year, entitled to a deduction under this section for the individual's qualified military income.
     (c) An individual who claims a deduction for the individual's military retirement pension income under section 4.5 of this chapter is not, for that taxable year, entitled to a deduction under this section for the individual's military retirement pension income.

SOURCE: IC 6-3-2-4.5; (13)IN1267.1.2. -->     SECTION 2. IC 6-3-2-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 4.5. (a) Each taxable year, an individual who receives a retirement pension for service in a branch or a reserve component of the United States military may claim a deduction under this section. The amount of the deduction is equal to the product of:
        (1) that part of a retirement pension received for service in a branch or a reserve component of the United States military that is included in the taxpayer's federal adjusted gross income; multiplied by
        (2) the applicable percentage as follows:
            (A) Twenty percent (20%) for a taxable year beginning after December 31, 2013, and ending before January 1, 2015.
            (B) Forty percent (40%) for a taxable year beginning after December 31, 2014, and ending before January 1, 2016.
            (C) Sixty percent (60%) for a taxable year beginning after December 31, 2015, and ending before January 1, 2017.
            (D) Eighty percent (80%) for a taxable year beginning after December 31, 2016, and ending before January 1, 2018.
            (E) One hundred percent (100%) for a taxable year beginning after December 31, 2017.
     (b) An individual who claims a deduction for the individual's military retirement pension income under section 4 of this chapter is not, for that taxable year, entitled to a deduction under this section for the individual's military retirement pension income.

SOURCE: ; (13)IN1267.1.3. -->     SECTION 3. [EFFECTIVE JANUARY 1, 2014] (a) IC 6-3-2-4, as amended by this act, applies only to taxable years beginning after December 31, 2013.
    (b) IC 6-3-2-4.5, as added by this act, applies only to taxable years beginning after December 31, 2013.
    (c) This SECTION expires January 1, 2016.