At the start of a Finance Committee meeting on Monday, Committee Chairman MK Hanoch Milwidsky presented the agreements reached regarding legislation on the bill granting tax credits for reservists in combat service.
According to him, the central demand is that the benefit be expanded to include all reservists, including those who do not reach the income threshold which requires payment of income tax, and therefore could not benefit from tax benefits in the original version of the bill.
Milwidsky explained: “The population earning below the tax threshold will receive an average addition of 3,000 shekels on a permanent basis as part of this law. Previously this was given as a temporary provision that was set to expire in December 2025; now it changes from a temporary measure to a permanent provision as part of this law.”
He added that the supplement will be given to low-income reservists to bring their income up to a cap of 9,800 shekels for each month of reserve service.
Milwidsky also noted that starting in 2028, there will be adjustments to the number of days of reserve duty required to qualify for the benefit, based on the expectation that the number of days of reserve duty will decrease.
Currently, the maximum benefit is granted to those who served at least 110 days of reserve duty, but later, the number of days will be reduced to better reflect the reality on the ground.