Veterans have been extended a new $20,000 exemption from West Virginia state income tax on their military pensions.

The West Virginia Legislature passed the bill.

Current law allows for the "first $2000 to be exempted," so now vets will be allowed to exempt $22,000 beginning next year.

Gail Harper, Director of Veteran's Affairs, says it will likely eliminate state income tax for 87 percent of the 8,700 military retirees living in the state. Harper also said it will "lure retired military people back to the state." The break will cost West Virginia about one million dollars in tax revenues.

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