AR HB1721

Removes the January 1, 2014 effective date requirement and clarifies that service pay or allowance received by active duty members of the armed forces is exempt from Arkansas income tax.

Defines "active duty member of the armed forces" to include all members of the armed forces, National Guard, and Reserve units, encompassing full-time training duty, annual training duty, and attendance at military service schools.

Defines "armed forces" to include the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, National Guard, and their reserve components, while explicitly excluding military technicians (dual status), the National Oceanic and Atmospheric Administration Commissioned Officer Corps, and the U.S. Commissioned Corps of the Public Health Service.

Retains the definition of "armed services" to encompass all members of the National Guard, reserve components, and all branches of the military and naval forces, including NOAA and Public Health Service commissioned officers.

Effective for tax years beginning on or after January 1, 2020.