SB1237 Summary

• Increases the income tax subtraction for retired or retainer pay of uniformed services of the United States from $3,500 to the full amount received for taxable years beginning after December 31, 2019.

• For taxable years 2018 and earlier, the subtraction remains capped at $2,500; for 2018-2019, it increases to $3,500.

• Applies retroactively to all taxable years beginning after December 31, 2019, allowing military retirees to exclude their full pension income from Arizona state income tax.