The bill SB1413 proposes to amend Arizona's income tax law by expanding the individual income tax subtraction for active service compensation. Currently, this subtraction applies only to compensation received for active service in the U.S. Armed Forces. The new bill language broadens this definition to include compensation for active service in the U.S. Uniformed Services, which encompasses additional branches such as the National Oceanic and Atmospheric Administration and the Public Health Service.

The changes will take effect on January 1, 2025, allowing members of the U.S. Uniformed Services to subtract their active service compensation from Arizona gross income when calculating their adjusted gross income. This amendment may impact individual income tax collections and, consequently, the state General Fund, depending on the number of individuals affected by this change.

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