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Subtraction for certain income of members of the National Guard and Reserves. (FE)

This bill allows members of the National Guard and military reserves in Wisconsin to exclude income earned from federally required drills, field exercises, and inactive-duty training from their state taxable income, starting in 2026. Previously, this type of compensation was not covered by existing tax relief. By closing this gap, the bill helps reduce the tax burden for those who serve in reserve military roles and recognizes their ongoing commitment. This change provides meaningful support to service members who balance civilian life with important military responsibilities.1