The proposed bill, if enacted, would amend current Arizona statutes regarding individual income tax by introducing a new subtraction for retirement account distributions for individuals aged 67 and older. Specifically, it would allow these taxpayers to subtract the amount of any distributions from their retirement accounts from their Arizona gross income, provided that these amounts are not already excluded under existing law. The total subtraction would be capped at the amount of the standard deduction, which is adjusted annually for inflation.

Additionally, the bill would define "retirement account" to include various types of qualified retirement plans and individual retirement accounts as specified in the Internal Revenue Code. The changes would apply to taxable years beginning after December 31, 2024, thereby establishing a new tax benefit for eligible seniors while also updating the definitions and limits associated with retirement account distributions in the context of Arizona's income tax laws.

Statutes affected:
Introduced Version: 43-1022
Senate Engrossed Version: 43-1022