An act relating to an income tax exemption for members of the National Guard

This bill proposes to exempt state active duty subsistence and quarters allowances from income tax for Vermont National Guard members. It directly affects both resident and nonresident National Guard personnel who receive these payments under Vermont law. The key provision amends state tax code to remove these specific allowances from taxable income, while other military pay types remain subject to taxation. The change would apply retroactively to January 1, 2023, for taxable years beginning on or after that date.