AZ SB1359

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

For taxable years beginning after December 31, 2020, veterans may subtract the full amount of retired or retainer pay received (previously capped at $3,500 for 2018-2020 and $2,500 through 2018).

Maintains existing subtraction caps for other retirement benefits, including $2,500 for federal and state retirement system pensions.

Applies retroactively to taxable years beginning after December 31, 2020.