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I was looking through the IG codex today and it made me think. Could i have a whole IG army of veteran squads? Instead of normal squads it may be a little bit more than normal but I repeat I think it would be really worth the extra two points per model.

Yes. You can. You just need 2 troops selections, and 1 HQ. So two Vet squads and a Primaris Psyker would meet the basic requirements.