AZ SB1157

Increases the subtraction limit for retired or retainer pay of uniformed services from $2,500 to $3,500 for taxable years beginning after December 31, 2018.

Allows honorably discharged veterans to subtract the full amount of retired or retainer pay from Arizona gross income without the $3,500 cap, effective for taxable years beginning after December 31, 2018.

Maintains the $2,500 subtraction limit for all other taxpayers through December 31, 2018.