The bill amends the Income Tax Act of 1967, specifically section 30, to update definitions and adjustments related to taxable income for individuals. It introduces new provisions allowing deductions for compensation received under the Wrongful Imprisonment Compensation Act and income from the cancellation of student loans for disabled veterans. The bill also clarifies the treatment of various income sources, including retirement benefits, education savings accounts, and the income of resident tribal members, while eliminating certain deductions related to oil and gas production. Additionally, it streamlines existing language by removing the stipulation regarding deductions for senior citizens born after 1945 and updates the language to reflect current practices.

Moreover, the bill provides various deductions and exemptions for taxpayers, particularly focusing on disabled veterans and first-time home buyers. It defines "disabled veteran" and allows for the deduction of wagering losses starting in 2021, as well as contributions to first-time home buyer savings accounts. The bill modifies personal exemptions, allowing a personal exemption of $3,700 multiplied by the number of personal and dependency exemptions, and introduces additional exemptions for stillbirth certificates and qualified disabled veterans. It also outlines the treatment of retirement and pension benefits based on birth years, allowing specific deductions for taxpayers born after 1945, and permits certain public safety employees to deduct their retirement benefits without limitations starting in 2023.

Statutes affected:
House Introduced Bill: 206.30