Military Pension Tax Deductibility Increase?

The Arizona Legislature is in session and has two nearly identical bills (SB 1359 and SB 1331) that increase the maximum subtraction from Arizona gross income for veteran benefits, annuities, and pensions from $3500 to the full pension amount for taxable years beginning from and after December 31, 2020. Contains a retroactive date of January 1, 2021.

A fiscal note SB1359 – 551R – Fiscal Note (azleg.gov) has been prepared for the Legislature which is favorable and the legislation is supported in the Governors “The Arizona Way”  AZ Way Policy Book.pdf – Google Drive and in the Budget forecast.

SB 1359 primary sponsor is Senator Wendy Rogers, Dist 6
SB 1331 primary Sponsor is Senator David Gowan, Dist 14

SB 1331 is scheduled to be heard in the Senate Appropriations Committee on 02 Feb 2021. Committee hearings start at 2:00 pm.

You can find the status of all bills affecting military issues at Arizona Department of Veterans’ Services at this LINK.

Below is a list of the members of the Senate Appropriations Committee if you’d like to contact any of them about this veteran’s issue: