If enacted, this bill 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 new provisions would apply to taxable years beginning after December 31, 2024, thereby updating the current law to reflect these changes and ensuring that the new tax benefits are available to eligible taxpayers starting in the 2025 tax year.

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