CA SB1071

Excludes specified amounts of retirement pay from federal uniformed services from California gross income for taxable years beginning January 1, 2021 through December 31, 2030

Exclusion phases in over five years: 50% for first two years, 75% for years three and four, and 100% for year five and beyond

Applies to retirement pay from the Armed Forces, Army and Air National Guard on active duty, and the commissioned corps of the United States Public Health Service

Requires Legislative Analyst to report by December 1, 2030 on exclusion effectiveness, including veteran participation rates and economic impact on California veterans

Sunsets December 1, 2031 and takes effect immediately as a tax levy