Digest: The Act exempts from state income tax all federal retirement pay or pension received for service in the Armed Forces by certain members of the Armed Forces. The Act applies to tax years that start on or after January 1, 2026. (Flesch Readability Score: 60.1). [Digest: Exempts from state income tax for a veteran all retirement pay or pension received for service in the Armed Forces. The Act applies to tax years that start on or after January 1, 2026. (Flesch Readability Score: 60.1).] Exempts from state income tax [for a taxpayer who is a veteran] all federal retirement pay or pension received for service in the Armed Forces of the United States for a taxpayer who is a disabled veteran or member of a reserve component or the National Guard. Applies to tax years beginning on or after January 1, 2026.