Senate Bill 929 proposes the creation of a new income tax subtraction for members of the National Guard and reserve components of the U.S. armed forces. 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 set to apply 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. The new bill expands these benefits to include additional forms of compensation for training activities, thereby enhancing the financial support for service members in Wisconsin.