AB 2394: Personal income taxes: exclusion: uniformed services: retirement pay.

The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.

This bill, for taxable years beginning on or after January 1, 2018, and before January 1, 2028, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. service performed in the uniformed services, as defined.

This bill would take effect immediately as a tax levy.