Indiana is home to nearly 500,000 military veterans, and we must continue our commitment to support them. I believe these retirees should receive the full amount of their well-earned military retirement benefits. Legislation is working its way through the legislative process to exempt veterans from getting taxed on their pensions.
Currently, 23 states do not tax any military retirement pay. In Indiana, military retirees age 65 and older are allowed to deduct up to $6,250 of their pension. However, Hoosier veterans rely heavily on that income for themselves and their families. And it should go further.
Legislation I supported would strengthen our commitment to Indiana veterans by implementing an income tax exemption for military retirement pensions, and increase the assessed value eligibility cap for the disabled veteran’s property tax exemption. After 2021, nearly 30,000 Hoosier veterans and surviving spouses could benefit from this tax exemption.
These taxes on military benefits are often a large factor for veterans deciding where to settle down after leaving the military. Implementing this exemption would incentivize veterans to remain in Indiana and attract others to relocate to our state. Our hope is that they also contribute their invaluable technical, communication and problem solving skills to our workforce. The economic benefits of keeping veterans in the state would easily make up for any potential loss of revenue our state may have from these taxes.
In order to support these heroes, Indiana veterans should keep their hard-earned money in their pockets, and their highly sought after skills in our state.
Retired military members risked their lives to ensure the safety of our state and nation, and this is just one way that we can thank them for their service. To learn more about House Bill 1010, visit iga.in.gov. If you have any questions or input on this bill or other legislation, contact me at 312-232-9769 or firstname.lastname@example.org.
State Rep. Steve Davisson (R-Salem) represents House District 73,
Washington County, and portions of Orange, Lawrence, Jackson, Clark and Harrison counties.
Click here to download a high-resolution photo.