For Arizona state tax purposes, you're allowed to subtract 25% of any net long-term capital gain that's been included in your federal adjusted gross income when it was derived from an investment in an asset acquired after December 31, 2011.
Please see Lines 19 through 23 - Net Capital Gain or (Loss) in the 2020 Arizona Resident Personal Income Tax Booklet available at Form 140 - Arizona Resident Personal Income Tax Booklet for more information.
