income tax; subtraction; uniformed services

SB 1155 amends Arizona's tax code to allow taxpayers to subtract compensation received for active service in the reserves, National Guard, or uniformed services (including combat zone pay) from their Arizona taxable income. This change directly affects Arizona residents who serve in these military roles, providing a tax deduction for their active-duty compensation. The key provision adds a new subtraction under Arizona Revised Statutes §43-1022, paragraph 11, aligning with federal tax treatment for such income. The bill was passed by the Arizona Legislature on February 27, 2025.