First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1280
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 6-3-1-34, AS AMENDED BY P.L.121-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 34. "Qualified military
income" means the following:
(1) Wages that are paid to a member of a reserve component of
the armed forces of the United States, including the United
States Space Force, or the National Guard for the member's
service in the reserve component or National Guard.
(2) For a member of an active component of the armed forces of
the United States, including the United States Space Force, one
hundred percent (100%) of wages that are paid to the member for
taxable years beginning in 2024 and thereafter for service in the
active component.
(3) Wages that are paid to a member of the United States
Public Health Service Commissioned Corps or the National
Oceanic and Atmospheric Administration Commissioned
Officer Corps for the member's service.
SECTION 2. IC 6-3-2-4, AS AMENDED BY P.L.162-2019,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4. (a) Each taxable year,
an individual, or the individual's surviving spouse, is entitled to the
following:
HEA 1280 2
(1) An adjusted gross income tax deduction for the first five
thousand dollars ($5,000) of income, excluding adjusted gross
income described in subdivision (2), received during the taxable
year by the individual, or the individual's surviving spouse, for the
individual's service in an active or reserve component of the
armed forces of the United States, including the army, navy, air
force, space force, coast guard, marine corps, merchant marine,
Indiana army national guard, or Indiana air national guard, or the
United States Public Health Service Commissioned Corps or
the National Oceanic and Atmospheric Administration
Commissioned Officer Corps.
(2) An adjusted gross income tax deduction for income from
retirement or survivor's benefits received during the taxable year
by the individual, or the individual's surviving spouse, for the
individual's service in an active or reserve component of the
armed forces of the United States, including the army, navy, air
force, space force, coast guard, marine corps, merchant marine,
Indiana army national guard, or Indiana air national guard, or the
United States Public Health Service Commissioned Corps or
the National Oceanic and Atmospheric Administration
Commissioned Officer Corps. The amount of the deduction is
the lesser of:
(A) the benefits included in the adjusted gross income of the
individual or the individual's surviving spouse; or
(B) six thousand two hundred fifty dollars ($6,250) plus the
following:
(i) For taxable years beginning in 2019, twenty-five percent
(25%) of the amount of the benefits in excess of six
thousand two hundred fifty dollars ($6,250).
(ii) For taxable years beginning in 2020, fifty percent (50%)
of the amount of the benefits in excess of six thousand two
hundred fifty dollars ($6,250).
(iii) For taxable years beginning in 2021, seventy-five
percent (75%) of the amount of the benefits in excess of six
thousand two hundred fifty dollars ($6,250).
(iv) For taxable years beginning after 2021, one hundred
percent (100%) of the amount of the benefits in excess of six
thousand two hundred fifty dollars ($6,250).
(b) An individual whose qualified military income is subtracted
from the individual's federal adjusted gross income under
IC 6-3-1-3.5(a)(18) for Indiana individual income tax purposes is not,
for that taxable year, entitled to a deduction under this section for the
HEA 1280 3
same qualified military income that is deducted under
IC 6-3-1-3.5(a)(18).
SECTION 3. [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]
(a) IC 6-3-1-34 and IC 6-3-2-4, both as amended by this act, apply
to taxable years after December 31, 2024.
(b) This SECTION expires July 1, 2028.
SECTION 4. An emergency is declared for this act.
HEA 1280 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1280