SCS/HS/HCS/HB 1172 - The act establishes a graduated income tax exemption for income obtained from privately funded pension funds, beginning in calendar year 1997. When fully implemented in 1999, retirees would be allowed to deduct $6,000 if filing an individual return with an adjusted gross income (AGI) less than $25,000 or if filing a combined return with an AGI less than $32,000. This provision is similar to SB 585 and identical to exemptions granted to state and federal retirees in 1990 as a result of a U.S. Supreme Court ruling.

The dependency exemption is increased from the current $400 to $1,000 in 1997, increased to $1,100 in 1998, and increased to $1,200 in 1999 and thereafter.
TOM CRAWFORD