Around 12,000 Indiana National Guard soldiers will enjoy a tax break starting with their 2023 returns. The military exemption bill, House Bill 1034, passed by the Indiana legislature in April and signed into law by Governor Eric Holcomb on May 1, grants a state income tax exemption. This exemption encompasses all Hoosier Guardsmen, including traditional members, military technicians, and full-time National Guard soldiers and airmen. The Indiana Department of Revenue says that National Guard members are eligible for a deduction from adjusted gross income for wages earned during their military service, covering both state and federal missions.