CA AB151

Excludes from gross income 50% of retirement pay received from the federal government for uniformed services in the first two taxable years beginning January 1, 2020.

Increases the exclusion to 75% in the third and fourth taxable years following initial eligibility.

Allows 100% exclusion of uniformed services retirement pay in the fifth taxable year and thereafter through December 31, 2029.

Defines "uniformed services" as the Armed Forces of the United States, Army and Air National Guard on active or inactive duty, and the commissioned corps of the United States Public Health Service.

Requires the Legislative Analyst to collaborate with the Department of Veterans Affairs and submit a report to the Legislature by December 1, 2029, evaluating the effectiveness of the tax exclusion in honoring veteran service and retaining skilled veterans in California.