Relating to: subtraction for certain income of members of the National Guard and Reserves. (FE)

SB 929 allows Wisconsin residents who are members of the National Guard or U.S. military Reserves to exclude certain military pay from their state income tax. Specifically, it creates a new tax subtraction for basic pay received under federal law (37 USC 204(a)(2)) and inactive-duty training compensation (37 USC 206/206a), provided this income isn't already excluded under other rules. The policy applies to taxable years beginning after December 31, 2025, directly benefiting eligible service members by reducing their state tax liability. This is a concrete tax policy change, not a procedural or commemorative measure.