The first $6,000.00 of service pay or service allowances received by any active duty member of the United States armed services shall be exempt from Arkansas income tax. All such service pay or allowances received above and beyond $6,000.00 for any given tax year shall be subject to Arkansas income tax.

For enlisted personnel, gross income shall not include compensation received while on active service in a combat zone or while hospitalized as a result of serving in a combat zone. IRC Sec. 112(a). With respect to commissioned officers, gross income shall not include *compensation received while on active service in a combat zone or while hospitalized as a result of serving in a combat zone. IRC Sec. 112(b).

Service allowances shall include, but not be limited to, the following: veteran's benefits; medical benefits; disability benefits; professional education; moving and storage; group-term life insurance; survivor and retirement protection plan premiums; subsistence; uniform; housing; overseas cost-of-living; evacuation; family separation allowances; death gratuities; interment (burial) allowance; various travel allowances; dependent benefits; and, when provided in connection with a permanent change of station, allowances for dislocation, temporary lodging and move-in housing.

United States armed services shall include the following; Army; Navy; Air Force; Marine Corps; Coast Guard; National Guard; Reserve units; and U.S. Public Health Service.