Further amend, amendment 31A, bearing document number 3579R067.EB.LKG, as and if amended, by inserting an appropriately numbered SECTION to read:
/ SECTION__. A. Section 12-6-1140 of the 1976 Code is amended by adding:
"(12) for taxable years beginning after 2015, military retirement benefits attributable to service on active duty in the armed forces of the United States."
B. Notwithstanding the deduction allowed by subsection A of this section, a percentage of military retirement benefits a taxpayer may deduct must be phased-in in three equal installments, with the military retirement benefit being one hundred percent deductible in all tax years beginning after 2017.
C. Section 12-6-1170(A)(2) of the 1976 Code is amended to read:
"(2) The term 'retirement income', as used in this subsection, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public employee retirement plans of the federal, state, and local governementsw, including military retirement. After taxable year 2017, military retirement is not included as retirement income for purposes of the deduction allowed by this section."
D. This portion of the act takes effect upon approval by the Governor and applies for taxable years beginning after 2015. /
Renumber sections to conform.
Amend title to conform.