Ind. Senate approves changes to benefits bill - Navy News | News from Afghanistan & Iraq - Navy Times

Ind. Senate approves changes to benefits bill

INDIANAPOLIS — The Senate approved legislation that would provide financial breaks for military service members and their families Friday night, sending the bill to Gov. Mitch Daniels, who proposed it.

The Senate unanimously concurred on House amendments to the bill with just two days left before scheduled adjournment.

The bill would exempt from the Indiana income tax all military pay guardsmen and reservists from Indiana earn from the moment they are activated for deployment to combat zones to the time they are demobilized.

It also would increase the annual maximum tax deduction for military pay, including retirement pay and survivor’s benefits, from $2,000 to $5,000.

Amendments included one that would establish a program to provide tuition scholarships to National Guard members whose education has been interrupted by the call to active duty.

The Indiana Department of Veterans Affairs estimates about 16,000 Hoosiers are currently on active duty with an additional 4,000 reservists. About 2,000 Indiana National Guard members currently are serving overseas. The agency estimates there are 546,000 veterans in Indiana.