The proposed General Assembly Raised Bill No. 7055 seeks to enhance tax benefits for the surviving domestic partners of police officers, firefighters, and emergency medical technicians who have died in the line of duty. The bill allows municipalities to create programs that can abate all or part of the property taxes on the principal residence of the surviving spouse or domestic partner, with the new legal language specifically adding "or domestic partner" to the existing tax abatement statute. Additionally, the bill introduces a personal income tax deduction for stipends paid to volunteer firefighters, volunteer fire police officers, and volunteer ambulance members, reflecting a commitment to support those who contribute to public safety.

Furthermore, the bill proposes several amendments to the current tax code, including a phased approach to tax deductions on distributions from individual retirement accounts (IRAs) based on federal adjusted gross income (AGI). Starting in 2023, individuals with an AGI under $75,000 can deduct a percentage of their IRA distributions, with the deduction increasing annually until it reaches 100% in 2026. The bill also includes various tax credits and deductions, such as enhancements to the Earned Income Tax Credit, expenses for licensed marijuana businesses, and contributions to ABLE accounts. It aims to provide targeted tax relief while ensuring compliance with federal regulations, with certain provisions set to take effect on October 1, 2025, and others applicable to taxable years beginning on or after January 1, 2026.

Statutes affected:
Raised Bill: 12-81x, 12-701
PS Joint Favorable Change of Reference: 12-81x, 12-701