AZ HB2011

Increases the income tax subtraction for military retirement pay in phases: $3,500 for 2018-2019, $5,000 for 2019-2020, $7,500 for 2020-2021, and $10,000 for 2021 and beyond.

Amends Arizona Revised Statutes section 43-1022 to modify paragraph 30, which addresses benefits and pensions from the uniformed services of the United States.

Previous law capped the military retirement pay subtraction at $2,500; this bill gradually increases the limit over four years to reach a permanent $10,000 cap.

Applies to retired or retainer pay received from the uniformed services of the United States beginning in the specified tax years.