Assembly Bill 913 proposes the creation of a new income tax subtraction for members of the National Guard and Reserves in Wisconsin. Specifically, it allows for the subtraction of income or compensation received for federally required drills and field exercises, as well as compensation for inactive-duty training. This provision is applicable to taxable years beginning after December 31, 2025.

Current law already provides tax subtractions for military income received by members of reserve components who are called into active federal service or special state service, as well as for those on active duty in the U.S. armed forces. The new bill aims to expand these benefits to include additional forms of compensation for service members, thereby enhancing the financial support for those serving in the National Guard and Reserves.