The bill amends the Income Tax Act of 1967 to redefine "taxable income" for individuals, introducing new deductions and adjustments aimed at providing financial relief to specific groups, including disabled veterans and first-time home buyers. Key provisions include allowing disabled veterans to deduct income from canceled student loans due to total and permanent disability, effective for tax years beginning January 1, 2025. The bill also introduces deductions for contributions to first-time home buyer savings accounts, with limits set at $5,000 for single filers and $10,000 for joint filers, while specifying that non-qualified withdrawals must be added back to taxable income. Additionally, it adjusts personal exemptions based on inflation and provides specific deductions for retirement benefits, particularly for those born before 1946.

Moreover, the bill modifies the corporate income tax structure, maintaining a 6% tax rate while detailing adjustments to the corporate income tax base. It includes provisions for the treatment of income and expenses related to oil and gas production and introduces new deductions for income derived from bitcoin mining at abandoned oil or gas wells. The bill aims to modernize the tax code, enhance fairness in taxation, and ensure that tax calculations reflect current economic conditions, while also clarifying definitions related to minerals and oil and gas to ensure compliance with existing tax laws.

Statutes affected:
House Introduced Bill: 206.30