Income tax, state; subtraction for National Guard pay.

Increases from $3,000 to $5,000 the maximum individual income tax subtraction for National Guard pay. Under current law, the maximum annual subtraction for wages or salary received for service in the National Guard of the Commonwealth of Virginia is the lesser of $3,000 or the amount of income derived by the person from 39 calendar days of such service. Under the bill, the maximum annual subtraction is the lesser of $5,000 or the amount of income derived from 39 calendar days of National Guard service. The income tax subtraction will continue to be available only to persons in the ranks of O3 and below. The provisions of the bill apply to taxable years beginning on or after January 1, 2017.