VETERANS SURVIVOR BENEFITS DEDUCTION

Current law authorizes an income tax deduction for retirement benefits received by a taxpayer as a result of service in the Armed Forces of the United States. This act also allows for the deduction of all survivor benefits derived from such service. (Section 143.121.3(12))

FIRST RESPONDER SURVIVOR BENEFITS DEDUCTION

For all tax years beginning on or after January 1, 2026, this act authorizes an income tax deduction for one hundred percent of retirement benefits received by a taxpayer, including all survivor benefits derived therefrom, as a result of the taxpayer's service as a first responder, as defined in the act. (Section 143.121.3(14))

EDUCATOR EXPENSES TAX DEDUCTION

For all tax years beginning on or after January 1, 2025, this act authorizes a tax deduction in the amount of 100% of unreimbursed educator expenses incurred by an eligible educator, not to exceed $500.

An eligible educator is defined as an individual who is a kindergarten through grade twelve teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year, or is a teacher in an early childhood education program.

Educator expenses are defined as expenses incurred as a result of the participation by the educator in professional development courses related to the curriculum in which the educator provides instruction, and expenses in connection with books, supplies, computer equipment and other equipment, and supplementary materials used by the eligible educator in the classroom. (Section 143.121.3(15))

This provision is identical to SB 873 (2022), SB 228 (2021), and SCS/SB 583 (2020), and to a provision in SB 12 (2025), SB 1055 (2020), and HB 2750 (2020), and is substantially similar to HCS/HB 1981 (2022), HB 1338 (2020), SB 61 (2019), and HCS/HBs 299 & 364 (2019).

FIRST RESPONDER TAX DEDUCTION

For all tax years beginning on or after January 1, 2025, this act authorizes a tax deduction for income received as salary or compensation for service as a first responder, not to exceed $500. First responder is defined as state and local law enforcement personnel, telecommunicator first responders, fire department personnel, and emergency medical personnel who will be deployed to bioterrorism attacks, terrorist attacks, catastrophic or natural disasters, and emergencies. (Section 143.121.3(16))

This provision is identical to a provision in SB 12 (2025).

LONG-TERM DIGNITY SAVINGS ACCOUNT TAX DEDUCTION

Current law authorizes an income tax deduction for one hundred percent of a participating taxpayer's contributions to a long-term dignity savings account, with such deduction scheduled to sunset on December 31, 2024. This act extends the sunset on the deduction until December 31, 2030. (Section 143.1160)

This provision is identical to SB 102 (2025) and SB 1010 (2024), and to a provision in SCS/HCS/HB 1483 (2024).

JOSH NORBERG