STATEHOUSE (Jan. 23, 2019) – The House Committee on Ways and Means today voted to advance State Rep. Bob Cherry’s (R-Greenfield) legislation that would provide tax relief to many Hoosier veterans.
Cherry’s legislation would phase in an income tax exemption for military retirement pensions and increase the assessed eligibility cap for the disabled veteran’s property tax exemptions.
“Veterans risked their lives for our safety and freedom,” Cherry said. “Now it’s our turn to support Indiana’s veterans and help them keep more of their hard-earned benefits in their pockets. With this tax exemption, the financial burden thousands of veterans face would be decreased.”
Nearly 30,000 Hoosier veterans and surviving spouses would benefit once all military retirement and survivor benefits are exempted from Indiana’s state income tax after 2021.
According to Cherry, the proposed legislation would also incentivize veterans to stay and utilize their skills working in Indiana. Currently, 23 states do not tax any military retirement pay, while 21 states, including Indiana, offer special considerations for military retirement income or other pension plans.
“Retaining veterans could help the state fill thousands of open jobs,” Cherry said. “The economic benefits of keeping veterans in the state and working would more than make up for any lost revenue.”
House Bill 1010 can now be considered by the full House of Representatives. To learn more, visit iga.in.gov.
State Rep. Bob Cherry (R-Greenfield) represents House District 53,
which includes portions of Hancock and Madison counties.
Click here to download a high-resolution photo.