Modifies provisions relating to an income tax deduction for military members engaged in certain civilian federal service

HB 1703 allows Missouri taxpayers who serve in the National Guard or military reserves to deduct a portion of their military-related income from their state taxable income. The deduction percentage increases gradually - from 20% in 2020 up to 100% starting in 2024 - and applies to income from training, reserve duty, or joining/re-enlistment bonuses. It directly affects Missouri military members (National Guard/reserves) who file state tax returns, reducing their taxable income for eligible military compensation. The bill also specifies that this deduction will no longer apply to civilian federal service positions (including uniformed roles) beginning in 2027.