This session, House Republicans are continuing their strong commitment to supporting our Hoosier veterans and putting their skills to use. Thousands of Indiana veterans risked their lives to ensure the safety of our state and nation, and I will continue seeking out new ways to support them and their families.
I authored House Bill 1010 to bolster the hard-earned benefits and pensions of Indiana veterans. My legislation would implement an income tax exemption for military retirement pensions and increase the assessed value eligibility cap for the disabled veteran’s property tax exemption. Nearly 30,000 Hoosier veterans and surviving spouses would benefit once all military retirement and survivor benefits are exempted from Indiana’s state income tax after 2021. Not only would this proposed legislation help honor those who served, but it would also offer incentives to veterans to stay and put their skills to work in Indiana.
Currently, 23 states do not tax any military retirement pay, while 21 states offer special considerations for military retirement income or other pension plans, including Indiana. Hoosier military retirees age 65 and older are allowed to deduct up to $6,250 of their pension. Veterans need their military retirement pay to go further, and taxes on military pensions are part of the equation when deciding where to live after leaving the military. Retaining veterans could help the state fill thousands of open jobs. The economic benefits of keeping veterans in the state and working would more than make up for any lost revenue.
Indiana has a proud history of decorated veterans who fought for freedom. At least 75 Medal of Honor recipients come from Indiana, with Hoosiers fighting in every war of America’s history. Each of these Hoosiers gave up so much for people they do not know. They fought for our freedom and protection, and pledged their allegiance to serving our country during times of both war and peace. We, as a state, should honor their commitment.
In order to best support them, we need to help them keep more dollars in their pockets. We also don’t want them leaving Indiana and taking their highly sought-after skills to another state that doesn’t tax them.
To learn more about House Bill 1010, visit iga.in.gov. Your opinions matter, and as proposals for new laws progress through the process, let’s stay connected. For questions or input, please call (317) 232-9651 or email [email protected].
State Rep. Bob Cherry, R-Greenfield, represents House District 53, which includes a large portion of Hancock County.
