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Iowa Lawmakers Advance Military Pension Bill

DES MOINES, Iowa (AP) Legislation that would exempt military pensions from state income tax is moving rapidly through the Iowa Senate.

A Senate committee approved the legislation during a brief hearing Thursday. It is expected to soon move to the full Senate for a vote.

Sen. Herman Quirmbach, a Democrat from Ames, says the bill honors veterans and may attract more military retirees to the state.

The military pension exemption is a top priority for Republican Gov. Terry Branstad, who has made support for veterans a key part of his budget plan this year.

According to the Branstad administration, the pension exemption would cost the state a projected $10 million in lost annual revenue.