The bill amends the Income Tax Act of 1967 to refine the definition of "taxable income" for individuals, introducing new deductions and adjustments aimed at providing targeted relief. 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 eliminates certain provisions related to oil and gas income and expenses, modifies deductions for senior citizens born after 1945, and clarifies the treatment of income from various sources, including U.S. government obligations and benefits for Holocaust victims.

Additionally, the bill introduces specific deductions for first-time home buyers and adjusts personal exemptions based on inflation. It defines "disabled veteran" and allows for deductions related to wagering losses and contributions to first-time home buyer savings accounts. The bill establishes a personal exemption of $3,700 per exemption claimed, an additional exemption for stillbirths, and a $250 exemption for qualified disabled veterans. It also allows public service employees to deduct retirement benefits without limitations starting in 2023 and includes provisions for corporate income tax adjustments related to bitcoin mining. The bill will take effect only if a related bill is enacted into law.

Statutes affected:
House Introduced Bill: 206.30