HF316

Limited individual income tax subtraction permitted for income received from a retirement savings plan.
Legislative Session 94 (2025-2026)

AI Generated Summary

The bill presented seeks to amend state taxation laws by allowing individuals to subtract some income they get from retirement savings plans when calculating their state taxes. This subtraction is up to $12,000 for married couples filing jointly or widowed individuals, and $6,000 for single filers or those filing separately. However, these subtraction limits decrease if the individual's income exceeds $32,000, dropping by 20% of the income amount over this threshold.

This tax break does not apply to individuals who are already benefitting from certain other tax subtractions. The types of retirement plans eligible for this subtraction include employer-sponsored plans, IRAs, SEP plans, SIMPLE IRAs, and certain other pension plans. The bill also mandates regular adjustments to these income thresholds to reflect changes in economic conditions, starting from the tax year 2025.

Bill text versions

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Actions

DateChamberWhereTypeNameCommittee Name
February 13, 2025HouseActionIntroduction and first reading, referred toTaxes
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Progress through the legislative process

17%
In Committee

Sponsors

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