CA AB46

Excludes federal military retirement pay from California state income taxation for taxable years beginning January 1, 2024 through December 31, 2033 for retired members of the uniformed services.

Excludes annuity payments from the United States Department of Defense Survivor Benefit Plan from state income taxation for the same period for surviving spouses and named beneficiaries.

Requires the Legislative Analyst, in collaboration with the Franchise Tax Board and Department of Veterans Affairs, to report by December 1, 2034 on the exclusions' effectiveness, including analysis of participation rates, economic impact, and earned income generated by beneficiaries.

Takes effect immediately as a tax levy and provides no local reimbursement is required under Article XIII B of the California Constitution.