AZ HB2140

Amends Arizona Revised Statutes Section 43-568 regarding income tax treatment for deceased members of the armed forces.

Eliminates income tax liability for individuals who die while in active service in the U.S. armed forces in a combat zone or area given equivalent combat zone treatment under Internal Revenue Code Section 112.

Tax exemption applies to the taxable year in which death occurs and all prior taxable years beginning from the first day the individual served in a combat zone or designated equivalent area.

Exemption also applies when death results from wounds, disease, or injury incurred while serving in a combat zone or similarly designated area.