The bill amends the Income Tax Act of 1967 to redefine "taxable income" for individuals, introducing new deductions and exemptions aimed at providing targeted relief to specific groups, including disabled veterans and individuals affected by wrongful imprisonment. Key provisions include the allowance for deductions related to compensation under the wrongful imprisonment compensation act, tax benefits for disabled veterans concerning student loan discharges, and new limits on deductions for senior citizens based on their birth year. The bill also eliminates outdated provisions related to oil and gas income and expenses, while establishing new deductions for contributions to education savings accounts and ABLE savings accounts, with maximum amounts adjusted annually based on the Consumer Price Index.

Additionally, the bill introduces specific deductions for first-time home buyers and adjusts personal exemptions for inflation, defining "disabled veteran" and allowing deductions for wagering losses starting in 2021. It modifies the treatment of retirement and pension benefits for individuals born between 1945 and 1967, allowing significant deductions and providing continued benefits for surviving spouses. The bill also revises tax withholding regulations for flow-through entities and mandates electronic filing for larger employers, emphasizing accurate reporting and compliance with new requirements. Overall, the bill aims to streamline the tax code while ensuring equitable treatment of various taxpayer groups in light of current economic conditions.

Statutes affected:
Senate Introduced Bill: 206.30