STATEHOUSE (Feb. 10, 2023) – The Indiana House of Representatives recently advanced legislation co-authored by State Reps. David Abbott (R-Rome City) and Denny Zent (R-Angola) that would phase-in a complete state income-tax exemption for military pay earned by active duty members.
Abbott said unlike active duty National Guard and reserve members who are exempt from the individual income tax, other active duty members can qualify for a maximum $5,000 exemption. House Bill 1034, which now moves to the Indiana Senate for consideration, would start with a 25% exemption on military pay in 2024, 50% exemption in 2025, 75% exemption in 2026, and end with a full exemption by 2027.
"We value our service members and we want them to call Indiana home," Abbott said. "This would a great step to show our support for their service and boost our workforce pipeline."
Zent said Indiana is already facing a skilled labor shortage, with more than 85,000 open job opportunities. He said veterans, with the necessary leadership and technical skills, could help fill these positions and help drive the workforce.
"Hoosier businesses need the work ethic and experience these service members possess," said Zent, a veteran of the Army and Air Force. "Measures like this could help fill some of the skills gaps our employers are contending with."
Neighboring states including Michigan and Kentucky offer a complete military income tax exemption for residents.
For more information and to follow legislative proceedings, visit iga.in.gov.
-30-
State Rep. David Abbott (R-Rome City) represents House District 18, which
includes portions of Elkhart, Kosciusko, Noble and Whitley counties.
Click here to download a high-resolution photo.
State Rep. Denny Zent (R-Angola) represents House District 51,
which includes all of LaGrange County and a portion of Steuben County.
Click here to download a high-resolution photo.
