Governor signs law giving tax break to military members Published Aug. 15, 2009 By Maj. Dale Greer 123rd Airlift Wing Public Affairs Office KENTUCKY AIR NATIONAL GUARD BASE, LOUISVILLE, Ky. -- Many Kentucky National Guardsmen will take home more money next year thanks to a new state law that exempts military pay from Kentucky income tax. The measure, signed into law by Gov. Steve Beshear on June 26, applies to any military member -- active duty, Guard or Reserve -- whose home of record is Kentucky. All forms of pay are exempt, including temporary duty assignments, state active duty, annual training and unit training assemblies for drilling reservists, state finance officials said. The military-pay exemption was part of House Bill 3, a wide-ranging economic-development initiative passed by the General Assembly during the 2009 Special Session. Language specific to the military benefit was inserted into the bill during conference committee negotiations thanks to the efforts of senior legislative leaders and members of the Senate and House committees on Veterans, Military Affairs and Public Protection. Those committees are chaired by Sen. Elizabeth Tori and Rep. Tanya Pullin, respectively. "The men and women who serve our state and nation as members of the U.S. Armed forces and the Kentucky National Guard make personal sacrifices every day to ensure that we are safe at home," Gov. Beshear said. "Whether it's helping the state recover from a devastating ice storm or deploying overseas in the Global War on Terror, they selflessly answer the call of duty any time, anywhere," he added. "This bill is a recognition of their commitment to the Commonwealth, and I am pleased to sign it into law."