The bill amends the Income Tax Act of 1967, specifically section 30, to enhance tax deductions and adjustments for individuals, particularly targeting seniors and disabled veterans. Key changes include an increase in the maximum deductible amounts for retirement or pension benefits, raising the limits for single returns from $42,240 to $65,897 and for joint returns from $84,480 to $131,794, effective January 1, 2025. Additionally, it introduces a new provision allowing senior citizens to deduct up to $14,688 for single returns and $29,376 for joint returns for interest, dividends, and capital gains, also starting January 1, 2025. The bill further stipulates that these maximum amounts will be adjusted annually based on the percentage increase in the United States Consumer Price Index.

Moreover, the bill establishes specific deductions for individuals born after 1952, allowing those who reach age 67 to deduct $20,000 for single returns and $40,000 for joint returns against all types of income. It also outlines a gradual increase in deductible percentages for retirement or pension benefits for taxpayers born between 1945 and 1967, from 25% in 2023 to 75% in 2025. Special provisions are included for surviving spouses and public safety employees, enabling them to deduct retirement benefits without additional limitations. Overall, the bill aims to provide financial relief and incentives for targeted groups while ensuring compliance with federal tax regulations.

Statutes affected:
House Introduced Bill: 206.30