A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.

HF 961 exempts up to $500,000 of income from nonqualified deferred compensation plans from state individual income tax. This exemption applies to taxpayers who are disabled, 55 years of age or older, or the surviving spouse or survivor with an insurable interest of an individual who would have qualified. The bill amends the state's tax code to include this new subtraction from net income. It also includes retroactive applicability, making it effective for tax years beginning on or after January 1, 2025.