Denver -- Making good on a promise they made to military retirees on day one of the 2016 legislative session, Senate Republicans on Tuesday passed Senate Bill 1, which eliminates current caps on how much military retirees are able to deduct from federal taxable income.
It's another feather in the cap for State Senator Larry Crowder (R-Alamosa), who served in the Army and is known as a strong advocate for military retirees and veterans.
"The tax relief offered by SB-1 will benefit our 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 approved by the House and signed by the Governor, SB-1 will eliminate these caps and allow veterans to claim a state income tax deduction for all military retirement benefits.
Crowder will not benefit from the bill because he isn't a military retiree.
"We introduced this bill first not only to show gratitude to those who serve our country in uniform, but to reaffirm our commitment, as Republicans, to focus on passing measures that will make a meaningful difference in the lives of everyday Coloradans," said Senate President Bill Cadman (R-Colorado Springs). "I'm pleased to report that we followed-through on those values by passing SB-1."
SB-1 now moves to the House for action.
Please contact Sean Paige at 719-337-0355 with any questions.