Personal Income Tax Law: exclusion: military veterans: combat zone compensation and disability retirement payments.

The Personal Income Tax Law provides various exclusions from gross income in determining tax liability, including an exclusion for death benefit payments received by a surviving spouse or other beneficiary designated by a military veteran, as prescribed, who dies or is killed in the performance of duty, as provided. This bill would, for taxable years beginning on or after January 1, 2010, exclude from gross income, as provided, Combat-Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP) payments, as defined, received by an eligible individual, as defined. This bill would make these provisions inoperative on January 1, 2018. This bill would take effect immediately as a tax levy.