DES MOINES | State lawmakers are marching at double time to move bills designed to induce returning veterans to live or relocate in Iowa to Gov. Terry Branstad's desk for his signature.

A Senate Ways and Means subcommittee unanimously approved Senate 303, a hold-over measure from last legislative session that would exempt military retirement pay from state income taxes retroactive to Jan. 1, 2013, for tax years beginning on or after that date.

Branstad included the tax break for veterans who retired from the active-duty military, National Guard and military reserves in his Home Base Iowa initiative that he has made the centerpiece of the 2014 session. He told a Veterans Day at the Capitol rally that he is pleased to hear the measure is on a "fast track" in the Legislature.

"That means no state income tax on military retirement anymore," Branstad said to a thundering cheer from the veterans who filled the Capitol building rotunda during Wednesday's observance.

Senate File 303 was well-received by veterans who attended Wednesday's subcommittee meeting.

"I thought about leaving because of the tax," said retired Army veteran Timothy McLaughlin of Nevada. "It would be a significant factor in the decision whether I stay or go," he said of the proposed tax exemption.

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