Supporting Our Troops: Knesset Bill Gives Tax Credit To Reservists

The Knesset approved a government-backed bill which would grant income-tax credit points to those who performed reserve duty as combat soldiers, on a graded scale based on the number of days they actually served, the Knesset announced on Wednesday.

The bill, promoted by Finance Minister Bezalel Smotrich, passed 26–0 with no abstentions, will award up to four credit points, scaled to reserve duty, who completed more than 30 days of reserve service during the prior tax year—amounting to thousands of shekels per year.

30 days of reserve service in a year will grant the reservist half a credit point, worth 121 NIS per month net. Fifty days of service will grant one credit point, worth 242 NIS per month. A reservist who serves 70 days will receive two credit points; 90 days will grant three credit points; and 110 days will grant four credit points, worth 968 NIS per month.

The benefit will be defined as a permanent provision, and starting in 2028, the brackets will begin at 20 days of reserve service, while 85 days of service per year will grant the maximum credit.

“The law that the Knesset approved today reflects a simple principle of justice: those who contribute more receive more,” Smotrich stated.