AZ HB2402

Amends Arizona income tax law to allow military retirees an additional subtraction of up to $3,000 annually from retired or retainer pay of the uniformed services of the United States.

This new $3,000 subtraction is an alternative to the existing $2,500 subtraction available under the general pension and annuity provisions in Arizona tax law.

The subtraction applies only to military retirement pay and does not affect other pension or annuity income from government or private sources.

The provision applies retroactively to taxable years beginning after December 31, 2013.