Arizona Revised Statutes Title 15. Education § 15-1876. Higher education expenses; exemption from taxation

Notwithstanding any other law, the amount of any distribution to a designated beneficiary, as defined in § 529(e)(1) of the internal revenue code,  1 from an individual trust account or savings account established under this article is exempt from taxation under title 43  2 but only to the extent that this income is used to pay qualified higher education expenses of the designated beneficiary.