The bill amends the Income Tax Act of 1967, specifically section 30, to introduce new provisions that enhance tax deductions for individuals, particularly focusing on those affected by wrongful imprisonment and disabled veterans. It allows for the deduction of compensation received under the wrongful imprisonment compensation act and establishes a deduction for disabled veterans concerning income from canceled student loans due to total and permanent disability. Additionally, the bill clarifies eligibility criteria for various deductions related to retirement benefits and education savings accounts, while also eliminating certain provisions regarding the taxation of oil and gas production income and expenses to streamline the tax code.

Moreover, the bill introduces significant changes to tax deductions for first-time home buyers and veterans, allowing taxpayers to deduct wagering losses and contributions to first-time home buyer savings accounts starting in 2021 and 2022, respectively. It modifies personal exemptions to include additional exemptions for taxpayers with a certificate of stillbirth or those who are pregnant, and establishes new limits on deductions for retirement or pension benefits based on birth year. The bill also allows certain public service employees to deduct their retirement benefits without limitations starting in 2023 and includes updated definitions to align with current legal standards. Overall, these amendments aim to provide clearer guidelines and enhanced tax relief for specific groups.

Statutes affected:
House Introduced Bill: 206.30