Today's Law As Amended

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AB-427 Personal income taxes: exclusion: uniformed services: retirement pay.(2019-2020)



SECTION 1.

 Section 17132.9 is added to the Revenue and Taxation Code, to read:

17132.9.
 (a) For taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income shall not include retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year in an amount equal to the following:
(1) For the first taxable year in which the exclusion provided by this section is allowed to the taxpayer, 50 percent of the amount of retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year.
(2) For the first taxable year following the taxable year in which the exclusion provided by this section is first allowed to the taxpayer, 50 percent of the amount of retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year.
(3) For the second taxable year following the taxable year in which the exclusion provided by this section is first allowed to the taxpayer, 75 percent of the amount of retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year.
(4) For the third taxable year following the taxable year in which the exclusion provided by this section is first allowed to the taxpayer, 75 percent of the amount of retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year.
(5) For the fourth taxable year following the taxable year in which the exclusion provided by this section is first allowed to the taxpayer, and every taxable year thereafter, 100 percent of the amount of retirement pay received by a taxpayer from the federal government for service in the uniformed services during the taxable year.
(b) For purposes of this section:
(1) “Armed Forces of the United States” has the same meaning as that term is defined in Section 17022.
(2) “Uniformed services” means Armed Forces of the United States, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, and the commissioned corps of the United States Public Health Service.
(c) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.