The bill amends the Income Tax Act of 1967, specifically section 30, to modernize the definitions and adjustments related to taxable income for individuals. Key insertions include a new definition of "taxable income" and various adjustments to adjusted gross income, such as adding gross interest income and dividends from out-of-state obligations, deducting certain retirement benefits, and specifying deductions for contributions to education savings accounts and ABLE accounts. Notably, it introduces provisions for deductions related to wrongful imprisonment compensation and student loan discharges for disabled veterans. The bill also removes outdated language regarding retirement benefits eligibility and clarifies conditions for various deductions, aiming to provide equitable tax relief to specific groups.

Additionally, the bill introduces new deductions for taxpayers, including wagering losses for nonresidents and a first-time home buyer savings account deduction, with specific caps on contributions. It allows taxpayers in vacant legislative districts to deduct a percentage of income received during the vacancy period, with varying rates based on the number of vacant districts. The bill also outlines new provisions for retirement or pension benefit deductions for taxpayers born between 1945 and 1967, with specific limits based on age and marital status. Overall, these changes aim to provide tax relief, encourage savings for first-time home buyers, and address the unique circumstances of taxpayers in vacant legislative districts.

Statutes affected:
House Introduced Bill: 206.30