Israel Approves Tax Break for Reserve Soldiers Building Homes

The Israel Land Authority has approved a significant benefit for combat reserve soldiers, granting them an exemption from extension fees and a refund for any such payments made for delays in constructing their private homes in 2026. This measure is expected to save soldiers tens of thousands of shekels.

The benefit specifically applies to combat reservists who served at least 60 days in 2026 and were called up for extended periods, impacting their ability to meet construction deadlines. The Land Authority stated that reserve duty prevented many soldiers from advancing their construction projects as stipulated in their contracts.

This decision aligns with a government policy to support combat reservists, referencing Government Resolution No. 3004 from May 11, 2025, which aims to recognize, assist, and reward reservists serving in the "Swords of Iron" war. The exemption from extension payments and potential refunds are intended to ease the financial burden caused by construction delays due to military service.

Eligible reservists who paid extension fees for 2026 and apply to the Authority by June 30, 2027, will receive a refund, adjusted for inflation. The 60-day service requirement for eligibility corresponds to the minimum service period for housing benefits, as outlined in government resolutions.

Yehuda Eliyahu, acting director of the Israel Land Authority, emphasized the importance of honoring reserve soldiers, stating that the decision aims to significantly alleviate financial concerns related to construction delays, allowing them to build their homes with peace of mind while serving the country.