We’re pleased that the first bill approved in the Senate this year is a bipartisan measure for our veterans.
Senate File 303 will exempt all military retirement pay from Iowa individual income tax starting this year. All Iowa residents receiving a pension for service in the Armed Forces, the Reserve or National Guard will get this benefit. Those who are eligible have given 20 or more years of military service to the nation. That kind of commitment is good for the communities where they choose to live.
Iowa is a national leader in state support for service members and military families. By exempting taxes on military pensions, we ensure we maintain that position by joining 26 other states that already offer this benefit. This initiative was approved by the Veterans Affairs Committee last year and moved quickly through the full Senate when the Governor threw his support behind it this year.
In the coming years, our nation will see a lot of retiring military personnel. These folks have skills that make them invaluable to Iowa businesses. Attracting these dedicated citizens to our state will reduce our shortage of skilled workers and help grow our economy.
The Iowa Business Council agrees. The organization has committed to hiring 2,500 veterans over the next 5 years. Iowa Business Council members already employ nearly 250,000 people in all 99 counties and all industries.
In another step toward attracting more veterans to Iowa, the State Board of Education recently approved in-state tuition at Iowa community colleges for veterans, their spouses and their dependents, something our state universities already do. We want our veterans and their families to choose Iowa for an affordable education and training—and then to stay here and be part of our workforce.