HELENA — Montana lawmakers are considering a bill that would allow state income tax exemptions for military pensions and military survivor benefits.
House Bill 49 was reviewed by the House Appropriations Committee on Monday after being endorsed by the full House on Feb. 5 in an initial 57-43 vote.
Military disability benefits are already exempt, but military pensions and survivor benefits are considered taxable income under state law.
The measure would cost the state an estimated $12.5 million in 2014, but supporters say the benefits far outweigh the loss in revenue.
The bill's proponents also say it's designed to encourage retired military veterans to relocate and invest in Montana.
The committee didn't take immediate action on the bill.
The bill must pass a final vote in the House before it advances to the Senate.