Bill > S2174

Introduced Session

This bill increases the maximum amount of pension and other retirement income that may be annually excluded from taxable gross income over a three-year period, and removes the income eligibility cap applicable to the exclusion. Under current law, qualifying taxpayers with $100,000 or less in annual income and who are at least 62 years old or disabled may exclude certain pension and retirement income from taxable gross income, up to a maximum of $20,000 for joint filers, $15,000 for individuals, and $10,000 for married individuals filing separately. This bill removes the annual income cap for eligibility so that taxpayers of any income level, who are otherwise eligible, may claim the exclusion. The bill also annually increases the amount that may be excluded per taxable year so that at the end of the three-year phase-in period, the maximum amount that may be excluded has increased fivefold compared to current levels, as follows: Filing Status Current Exclusion Year 1 Year 2 Year 3 Married-Joint $20,000 $40,000 $80,000 $100,000 Individual $15,000 $30,000 $60,000 $75,000 Married-Separate $10,000 $20,000 $40,000 $50,000 The purpose of this bill is to allow qualifying taxpayers with pension and retirement income to exclude more of their income from taxable gross income. By removing the annual income cap for eligibility, this bill allows greater numbers of taxpayers to benefit from the tax relief provided by the exclusion.

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Joe Pennacchio (R)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 05/16/2016)