The bill amends the Income Tax Act of 1967, specifically section 30, to redefine "taxable income" for individual taxpayers, excluding corporations, estates, or trusts. Key insertions include provisions that allow taxpayers to add gross interest income and dividends from out-of-state obligations, as well as taxes deducted in calculating adjusted gross income. It also introduces deductions for retirement benefits from public retirement systems, Social Security benefits, and income from U.S. government obligations. New deductions are established for senior citizens, disabled veterans, and individuals receiving compensation under the wrongful imprisonment compensation act. Additionally, the bill eliminates provisions related to income and expenses from oil and gas production and introduces deductions for contributions to education savings accounts and ABLE savings accounts.

The bill further specifies that nonresidents can only deduct wagering losses from in-state casino or licensed race meeting transactions, and it allows deductions for contributions to first-time home buyer savings accounts, with limits based on filing status. New deductions for physical fitness expenses are introduced, along with revisions to personal exemptions and additional exemptions for dependents with disabilities. The bill also outlines a structured approach to retirement benefit deductions based on taxpayers' birth years, with specific provisions for public safety employees to deduct retirement benefits without limitations. Overall, the bill aims to provide tax relief and incentives for various groups while clarifying the rules for deductions and exemptions.

Statutes affected:
House Introduced Bill: 206.30