Iowans who’re earning a military pension would not longer have to pay state income tax on that pension under legislation that cleared the Iowa Senate this afternoon. The proposal is part of the governor’s “Home Base Iowa” initiative, to lure soldiers leaving the military to choose Iowa as their new home.
“I see this as a great return on investment because for that investment Iowans will receive men and women who possess leadership skills, technical skills, a proven record of service and sacrifice,” Senator Daryl Beall, a Democrat from Fort Dodge who is chairman of the Senate Veterans Affairs Committee, said during Senate debate.
Officials estimate the veterans who already live in Iowa will save up to $10 million in taxes under the proposal. The bill passed the senate this afternoon on a 46-0 vote. It must also clear the full House before it goes to Governor Branstad’s desk for his approval.