The bill amends the Income Tax Act of 1967 by updating Section 30 and adding new sections 279 and 679, which redefine "taxable income" for individuals, excluding corporations, estates, or trusts. Key insertions include provisions for adding gross interest income and dividends from out-of-state obligations, deducting retirement benefits from various public retirement systems, and adjustments related to education savings accounts and ABLE accounts. Additionally, it introduces a deduction for disabled veterans concerning income from student loan discharges due to total and permanent disability. The bill also removes specific language regarding deductions for senior citizens born after 1945 and eliminates income and expenses related to oil and gas production from adjusted gross income.

Further, the bill provides specific deductions and exemptions for disabled veterans and first-time home buyers, while adjusting personal exemptions based on inflation. It defines "disabled veteran" and allows for the deduction of wagering losses for nonresidents, contributions to first-time home buyer savings accounts, and interest earned on those accounts. The personal exemption is set at $3,700 multiplied by the number of exemptions claimed, with annual adjustments based on the Consumer Price Index. The bill also introduces a tax credit for contributions to certified scholarship-granting organizations participating in the student opportunity scholarship program, effective from the 2025 tax year, allowing taxpayers to claim a credit of up to 100% of their contributions, with specific conditions for preapproval and reporting.

Statutes affected:
Senate Introduced Bill: 206.30