AZ SB1542

Amends Arizona Revised Statutes Section 33-1126 to clarify exemptions from execution and attachment for certain debtor property, including money benefits, insurance proceeds, and retirement plan assets.

Adds new exemption for federal and state personal income tax credits, including earned income tax credits and child tax credits, with the exemption amount limited to the lesser of total refunds or total credits claimed.

Modifies prepaid rent exemption for personal property homestead to allow persons 18 years or older who do not exercise homestead exemption under article 1 to claim up to $2,000 in prepaid rent and security deposits for their residence.

Maintains existing exemptions for life insurance cash surrender values, annuity contracts, college savings plans under Internal Revenue Code Section 529, and retirement plan assets under sections 401(a), 403(a), 403(b), 408, 408A, 409, and 457.

Repeals conflicting version of Section 33-1126 as amended by Laws 2022, chapter 346, section 1.