Denver -- Military retirees in Colorado could enjoy a lot more financial security in the future if a tax relief bill heard at the Statehouse today keeps moving forward.
Senate Bill-75, authored by Senator Larry Crowder (R-Alamosa), eliminates current caps on how much military retirees are able to deduct from federal taxable income. The bill passed its first test today on a 5 to 0 vote of the Senate Finance Committee.
"This bill will benefit military retirees immensely, especially those of modest means living on fixed incomes," said Crowder. "It is a small token of appreciation our state can give retirees for their years of service, which also will give Colorado's economy a boost by leaving more money in retirees' pockets and attracting folks with their talent and training to the state."
Currently, veterans between 55 and 64 years old can deduct up to $20,000 of their military retirement benefits from federal taxable income, and a veteran over 65 may deduct up to $24,000. If successful, SB-75 will eliminate these caps and allow veterans to claim a state income tax deduction for all military retirement benefits.
The vote is another feather in the cap for Crowder, who served in the Army and is known as a strong advocate for military retirees and veterans. Crowder will not benefit from the bill because he isn't a military retiree.
SB-75 next moves to the Senate Appropriations Committee.
Please contact Sean Paige at 719-337-0355 if you have questions.