The bill amends the Income Tax Act of 1967, specifically section 30, to introduce new provisions that enhance tax relief for certain groups, including individuals wrongfully imprisoned and disabled veterans. It allows for the deduction of compensation received under the Wrongful Imprisonment Compensation Act and provides specific tax benefits related to the cancellation of student loans for disabled veterans. The bill also clarifies the treatment of income from education savings accounts and ABLE accounts while eliminating certain deductions associated with oil and gas production. Additionally, it modifies existing language to improve clarity and compliance with federal regulations, including the removal of outdated references and adjustments to eligibility criteria for various deductions.

Moreover, the bill introduces amendments concerning deductions for gambling losses and first-time home buyer savings accounts, allowing taxpayers to deduct wagering losses and contributions to these accounts starting in 2021 and 2022, respectively. It establishes a personal exemption of $3,700 per exemption claimed, with additional provisions for individuals with disabilities and qualified disabled veterans. The bill also outlines specific rules for joint returns and retirement or pension benefits for public employees, allowing certain deductions without limitations for those in specific service roles starting in 2023. Overall, the amendments aim to streamline the tax code, making it more equitable and accessible while providing targeted relief to specific taxpayer groups.

Statutes affected:
House Introduced Bill: 206.30