State Senator Herman Quirmbach of Ames led the Senate to a bipartisan passage of a measure that will exempt military pensions from Iowa state taxes.
“These veterans have given 20 or more years of service to the nation. That kind of commitment is a value that goes deeper than the uniform. It is part of who they are and it will benefit the communities where they choose to live,” said Quirmbach. “Iowa is a national leader in state support for service members and military families. By exempting taxes on military pensions, Iowa has caught up with the states that already do so.”
Quirmbach said Senate File 303 will exempt all military retirement pay from Iowa individual income tax. This will apply to all Iowa taxpayers receiving a pension for service in the Armed Forces, the Reserve or National Guard. It applies retroactively to Jan. 1, for tax years beginning on or after that date.
“Attracting newly retired veterans will reduce our state’s shortage of skilled workers and help grow our economy,” said Quirmbach. “Now that it has passed the Iowa Senate with Democratic and Republican support, I’m hoping the Iowa House will act quickly to send it to the governor.”