SB 929

This bill creates an income tax subtraction for the amount of income or compensation received for federally required drills and field exercises by an individual who is a member of the National Guard or a reserve component of the U.S. armed forces and the compensation received by a member of a reserve component of the U.S. armed forces for inactive-duty training. The bill’s provision applies to taxable years beginning after December 31, 2025.

Current law provides an income tax subtraction for military income received by a member of a reserve component of the U.S. armed forces who is called into specified active federal service or special state service. Current law also provides an income tax subtraction for military income received by an individual who is on active duty in the U.S. armed forces.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.