At the urging of Gov. Terry Branstad, lawmakers approved a bill last session aimed at making Iowa more attractive to military veterans and help them find jobs.
The bill, called Home Base Iowa, exempts federal retirement pay from state income taxes and makes it easier to obtain licenses for civilian jobs based on military training.
Branstad says he hopes to sign the bill on Memorial Day at Camp Dodge in Johnston.
The Home Base Iowa bill is expected to exempt taxes for 7,765 current Iowans receiving military retirement income. The state is expected to lose about $9 million a year in revenue to the general fund.
The National Conference of State Legislatures says Iowa is among dozens of states approving measures aimed at helping veterans.