The Knesset approved today (Wednesday) the government bill promoted by Finance Minister Bezalel Smotrich, which will 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 initiative is intended to grant income-tax credit points to reservist fighters who completed more than 30 days of reserve service during the previous tax year, on a graduated basis according to the actual service performed. They will be eligible for increasing tax benefits, up to a ceiling of four annual credit points - amounting to thousands of shekels per year.
Thus, 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.
In addition, the bill establishes as a permanent provision - and links to the index - the minimum monthly compensation given to a reservist combat soldier, setting it at 9,632 NIS per month of reserve service in 2025.
Minister Smotrich concluded: “The law approved by the Knesset today reflects a simple principle of justice: those who contribute more, receive more. This is a Zionist, moral, and economic policy. This is how you build a country that honors its defenders, and this is how you create real incentives for meaningful reserve service.”