AR HB1412

Establishes a phased income tax exemption for retirement and survivor benefits received by members of the uniformed services, with exemptions increasing over time: $12,000 for tax year 2015, $20,000 for 2016, $28,000 for 2017, and the entire amount beginning in 2018.

Defines "member of the uniformed services" to include retired members of the U.S. Army, Marine Corps, Navy, Air Force, Coast Guard, reserve components, state National Guard, U.S. Public Health Service, and National Oceanic and Atmospheric Administration.

Taxpayers claiming the uniformed services exemption under subsection (e) are ineligible for the standard $6,000 retirement income exemption under subsection (a).

Makes technical amendments to Arkansas Code § 26-51-307 to clarify that existing exemptions for retirement and disability benefits from individual retirement accounts and employment-related retirement systems shall apply, with a $6,000 annual limit per taxpayer.

Maintains the $20 additional state income tax credit for individuals age 65 and older who do not claim a retirement income exemption.