SF 303 – Military retirement pay tax exemption
SR 103 – Federal Wind Energy Production Tax Credit
FLOOR & COMMITTEE ACTION:
SF 303 exempts from the individual income tax all military retirement pay from federal service in the Armed Forces, the Reserve or National Guard. The exemption is in addition to the general pension exclusion. The bill also excludes military pension income from the computation of net income, which determines if a taxpayer must file a return and what tax bracket their income would be subject to. The tax exemption and income exclusion applies retroactively to January 1, 2014, for tax years beginning on or after that date. [Floor 1/27: 46-0 (Bertrand, Chelgren, Greiner, Segebart excused); Committee 1/24: short form (Bertrand, Petersen excused)]
COMMITTEE ACTION:
SR 103 supports the extension of the federal wind energy production tax credit, which expired December 31, 2013. This credit has supported the recent expansion and innovation of the wind energy industry in Iowa. There are thousands of jobs in Iowa that are connected to the wind industry, including manufacturing, operation and maintenance positions. The expiration of the credit puts many jobs in the state at risk and slows down investments by energy producers in the clean, renewable energy. [1/29: short form (Behn, Bertrand excused)]