Indiana House Bill HB1277

Indiana 2023 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23

Caption

Taxation of retired and active members of USPHS.

Impact

If enacted, HB 1277 would allow active members of the USPHS and retired personnel to deduct income related to their service from their adjusted gross income, thereby reducing the overall taxable income. The bill delineates specific provisions that outline the allowable deductions, which include income from military pay, retirement, and survivor benefits. The implementation of this legislation could set a precedent for recognizing and providing financial relief to members of public health service similarly as is done for military veterans.

Summary

House Bill 1277 aims to amend Indiana's taxation code specifically concerning members of the United States Public Health Service (USPHS) commissioned corps. The bill introduces the definition of 'qualified uniformed service income' which is intended to facilitate a clearer understanding of income eligibility for tax deductions for those serving in this capacity. The primary intent is to ensure that both active and retired members of the USPHS receive equitable treatment concerning their income tax liabilities in Indiana, aligning them with other service members from the armed forces who are already entitled to similar deductions.

Contention

One point of contention surrounding HB 1277 may revolve around the fiscal implications of expanding tax deductions to include USPHS members. While proponents likely argue that this recognition is long overdue, critics may express concerns about the potential loss of state revenue resulting from these new exemptions. Furthermore, there may be discussions regarding the fairness and balance of providing additional benefits to a relatively specialized group of public servants compared to broader fiscal needs across the state. The legislative debate will likely address these economic considerations along with the moral obligations to support public health officials.