AZ HB2676

Amends Arizona Revised Statutes Section 43-1022 to increase the income tax subtraction for military pensions received as retired or retainer pay of the uniformed services of the United States.

For taxable years through December 31, 2018, the subtraction remains at $2,500; for taxable years beginning December 31, 2018 through December 31, 2019, increases to $3,500.

For taxable years beginning December 31, 2019 and thereafter, allows the full amount of military retirement pay to be subtracted from Arizona gross income with no dollar limit.

Applies retroactively to taxable years beginning from and after December 31, 2019.