AZ SB1155

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

Increases the subtraction cap for uniformed services retirement pay from $2,500 (through December 31, 2018) to $3,500 (January 1, 2019 through December 31, 2020) to the full amount received (beginning January 1, 2021).

Clarifies that active compensation for reserves, national guard, and uniformed services members continues to receive the existing subtraction under paragraph 11 of section 43-1022.

Makes the change effective for taxable years beginning after December 31, 2025.