The bill amends the Income Tax Act of 1967 to enhance the definition of "taxable income" for individuals, particularly focusing on new deductions and adjustments for specific groups. Key provisions include allowing disabled veterans to deduct income from canceled student loans due to total and permanent disability, effective for tax years starting January 1, 2025. The bill also introduces deductions for contributions to first-time home buyer savings accounts, with limits of $5,000 for single filers and $10,000 for joint filers, applicable from January 1, 2022. Additionally, it specifies that grant money received for broadband expansion will be deductible starting January 1, 2023.

Moreover, the bill removes certain provisions related to the taxation of oil and gas production income and expenses, while clarifying the treatment of income from U.S. government obligations. It adjusts personal exemptions, allowing a personal exemption of $3,700 multiplied by the number of exemptions claimed, and introduces additional exemptions for taxpayers with dependents who are disabled veterans. The bill also outlines specific deductions for retirement and pension benefits, particularly for surviving spouses and public service employees, aiming to provide financial relief and support to targeted demographics while streamlining the tax code.

Statutes affected:
Senate Introduced Bill: 206.30