AR SB782

Phases in income tax exemption for retirement and survivor benefits received by uniformed services members: $12,000 exempt for tax year 2015, $20,000 for 2016, $28,000 for 2017, and full exemption for tax years beginning January 1, 2018.

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

Maintains existing $6,000 income tax exemption for retirement and disability benefits from individual retirement accounts and public or private employment-related retirement systems for non-uniformed services members.

Provides a $20 additional state income tax credit for individuals age 65 or older who do not claim the standard retirement benefits exemption.

Establishes that uniformed services members claiming the new exemption under this section are ineligible for the standard $6,000 retirement benefits exemption.