An Act to create 71.05 (6) (b) 57. of the statutes; Relating to: subtraction for certain income of members of the National Guard and Reserves. (FE)
Summary
AB913 creates a new Wisconsin income tax subtraction for certain pay received by members of the National Guard and U.S. reserve components. Specifically, it excludes from Wisconsin taxable income the basic pay received for federally required drills and field exercises by National Guard members and the inactive-duty training compensation received by reserve-component members, to the extent that income is not already subtracted under existing law. The change applies to taxable years beginning after December 31, 2025.
The bill builds on current Wisconsin law, which already provides income tax subtractions for certain military pay, including compensation for reserve members called to specified active federal or special state service and for active-duty military income. AB913 expands that tax preference to cover additional categories of routine drill and training pay, thereby reducing state taxable income for affected service members and modestly reducing state tax collections. The bill also implicates the state tax code, specifically Wisconsin Statutes section 71.05, and may be reviewed as a tax exemption measure.
Impact
AB913 amends Wisconsin’s individual income tax subtraction provisions by creating a new statutory exclusion in s. 71.05 (6) (b) 57. for qualifying National Guard and reserve pay. The practical effect is to lower taxable income for eligible service members beginning with tax years after December 31, 2025, while leaving other military income subtraction provisions in place. The bill affects the Department of Revenue’s administration of the individual income tax and may have a fiscal impact on state revenues, but it does not change federal tax law or eligibility for military compensation itself.
Sentiment
The available voting record shows strong bipartisan support and no recorded opposition: the Assembly passed the bill 96-0 and the Senate concurred 33-0. That suggests the proposal was viewed favorably as a targeted tax benefit for service members. No committee transcript is available, but the unanimous votes indicate broad agreement that the bill provides a modest and politically popular tax relief measure for National Guard and reserve personnel.
Contention
There is little visible contention in the available record. The main policy issue is the scope of the tax subtraction—whether Wisconsin should extend tax relief to routine drill, field exercise, and inactive-duty training compensation in addition to the military income already excluded under current law. Any concerns would likely center on the revenue cost of the exemption and the precedent of expanding tax preferences, but the unanimous votes suggest those concerns did not generate significant opposition.
Crossfiled
An Act to create 71.05 (6) (b) 57. of the statutes; Relating to: subtraction for certain income of members of the National Guard and Reserves. (FE)