Knesset lawmakers on Wednesday night gave final approval to a bill granting tax benefits to residents of some communities in Judea and Samaria, Israeli Finance Minister Bezalel Smotrich announced.
The law, which was initiated by fellow Religious Zionism Party MK Zvi Sukkot, passed with the backing of 32 out of 120 Knesset members, while 23 MKs voted against the proposal.
“The tax benefits we approved in the Knesset plenum are another step toward the goal of one million residents in Judea and Samaria,” Smotrich tweeted.
“Since [then-Prime Minister Ariel] Sharon’s disengagement government [in 2005], the residents of Judea and Samaria have been discriminated against, despite standing courageously and heroically on the front line of the State of Israel,” he added. “As of today, they are no longer second-class citizens.”
The approved legislation grants tax breaks to Israelis living on the “Eastern Confrontation Line” in Judea and Samaria if they are located more more than 2 kilometers (1.2 miles) from the security barrier.
To qualify, a community must also meet several other criteria, including that school transportation is only allowed in bulletproof buses according to Defense Ministry rules. The town must also be recognized under Israeli law and rank in cluster 6 or below on the 10-point socioeconomic index.
Israelis will be eligible for an income tax credit if they live in a qualifying community for the entire year, subject to rates and caps set under the tax code.
The tax break will apply retroactively from Jan. 1, 2026, and remain in effect through Dec. 31, 2027. The finance minister may extend the measure, subject to approval by the Knesset Finance Committee, for additional periods of up to two years at a time.
Israel Hayom reported that 58 communties are expected to qualify, naming them as Adei Ad, Ahiya, Alon Moreh, Amichai, Ateret, Avnei Hefetz, Beit El, Bruchin, Dolev, Einav, Eli, Emanuel, Evyatar, Gitit, Givat Harel, Givat HaRoeh, Halamish (Neve Tzuf), Hamra, Har Bracha, Harasha, Havat Gilad, Hermesh, Immanuel, Itamar, Karmei Tzur, Karnei Shomron, Kedumim, Kerem Reim, Kfar Eldad, Kida, Kiryat Netafim, Kokhav Hashahar, Kokhav Yaakov, Ma’ale Amos, Ma’ale Levonah, Ma’ale Michmash, Mevo Dotan, Mevo’ot Yericho, Migdalim, Migron, Nahliel, Neria, Nofei Nehemia, Nofim, Nokdim, Ofra, Psagot, Rehelim, Revava, Rimonim, Sa-Nur, Shavei Shomron, Shiloh, Shvut Rachel, Talmon, Tapuach, Tekoa, Tel Zion and Yitzhar.
Smotrich said he hoped the move would “strengthen Israel’s security buffer and, in practice, prevent the establishment of a Palestinian terror state in the heart of the country.”
“I will continue, as minister of finance, to strengthen and build the Land of Israel, support the rehabilitation of the north and the south, assist reservists and working families, and above all, prevent the next October 7 from happening in the heart of the country,” he stated, in reference of the Oct. 7, 2023, Hamas-led massacre.
More than two in three Israeli Jews fear that Palestinian terrorists based in Judea and Samaria could carry out a significant attack similar to the Oct. 7 massacre, according to a survey the Jerusalem Center for Security and Foreign Affairs published in February 2025.
Palestinian terrorists targeted Israeli Jews in Judea and Samaria at least 5,051 times in 2025, according to figures published by the Rescuers Without Borders (Hatzalah Judea and Samaria) NGO.
The figures do not include the hundreds of violent attacks on Israeli security personnel occurring during ongoing counter-terrorism operations in Arab towns under the control of the Palestinian Authority.
Twenty-four Israelis were murdered in Judea and Samaria in 2025, and more than 400 others were wounded, per the group’s annual report.
The findings, which were cross-checked against official data from Israeli security agencies, included 3,299 instances of rock-throwing, 458 firebomb attacks, 655 attempts to blind drivers with laser pointers, 286 attacks involving explosives and 19 shootings.
