The Knesset on Wednesday approved, in its second and third readings, a law initiated by Finance Minister Bezalel Smotrich that will grant income tax credit points to IDF combat reservists based on days served, the Knesset announced on Wednesday.
The bill, which passed 26–0 with no abstentions, will award up to four credit points, scaled to reserve duty performed in the prior tax year.
How the credit will work in 2026
Under the law, which takes effect for tax year 2026 based on reserve service in 2025, combat reservists who served 30–39 days will receive half a credit point.
Those who served 40–49 days will receive three-quarters of a point, and those who served 50 days or more will receive one full point. From that level, an additional quarter point will be added for every five extra days, capped at four points for more than 110 days.
“The law that the Knesset approved today reflects a simple principle of justice: those who contribute more receive more," Smotrich stated.
"This is a Zionist, moral, and economic policy. This is how you build a state that cherishes its defenders, and this is also how you create a real incentive for meaningful reserve service.”
Finance Committee chairman MK Hanoch Milwidsky also welcomed the measure, though he noted it did not fully make up for what Israel owes its combat reservists.
“These are people who leave everything behind for years and go to reserves again and again,” he said, calling for state readiness to support the transition back to civilian life.
Lt. Col. (res.) Udi Tenne, who served more than 600 reserve days during the war and serves as the chairman of the “Hahazakim Mitgalim” association, which works to promote IDF wounded and combat soldiers, and who, together with his organization, helped advance this bill, commented:
“Hundreds of thousands of reserve soldiers thank the Chair of the Finance Committee, MK Milvetski, for advancing this important bill. This is a formative move that places reserve soldiers at the center stage. The next step is legislation for the families of reserve soldiers, who carry the burden of the campaign, as well as continuing to care for the welfare of IDF wounded, with an emphasis on those suffering from combat trauma.
"The Hahazakim Mitgalim association will continue to be the protective vest that safeguards and improves the conditions of all service members, and especially reserve combat soldiers and IDF wounded.”