Bennett unveils 'Confrontation Line Law' proposing expanded tax, municipal benefits for North

Former prime minister and B’Yachad party chairman Naftali Bennett presented northern local authority leaders on Wednesday with his party's proposed "Confrontation Line Law," which would expand the area eligible for state assistance and increase tax and municipal tax benefits for residents and businesses.

Bennett toured Israel's northern border together with fellow party members Keren Turner, Bruria Naim-Arman, and Nisan Zeevi, who has led efforts to rehabilitate communities along the confrontation line and, according to the party, would oversee implementation of the law in a future government.

Bennett held lengthy discussions with local authority heads, heard their concerns, and told them that his support for northern communities during the recent war, which included dozens of visits to communities along the confrontation line, would be translated into legislation after the elections.

According to the party, the proposed legislation could affect the lives of approximately half a million Israelis.

The draft "Confrontation Line Law" is based on two existing legislative frameworks: the Tekuma Law, from which it adopts mechanisms for rehabilitation, budgeting, and implementation, and legislation providing assistance to Sderot and communities in the western Negev, which the party said provides a precedent for tax benefits, municipal tax discounts, and regional incentives.

The proposal would combine those frameworks with the existing Tenufa Directorate and government decisions, creating what the party described as a single, stable and binding legal framework for rehabilitating northern Israel.

Confrontation line would be extended to include Safed, add'l communities

Under the proposal, the confrontation line would be expanded from communities located within 0-9 km. of the border to those within 0-12 km. The change would include Hatzor Haglilit, Safed, and additional communities within the designated national priority area, making them eligible for assistance programs and benefits.

The plan would also increase tax benefits for residents by adding between four and six tax credit points or, alternatively, introducing a graduated five-year tax exemption track.

According to an example provided by the party, a person earning approximately NIS 20,000 per month could receive benefits worth up to NIS 8,000-NIS 15,000 annually under an expanded tax-credit system.

The proposal also includes incentives for businesses operating in the region.

Corporate tax would be reduced by between five and 10 percentage points for companies with substantial activity in the designated area. According to the party's example, a company earning an annual profit of NIS 1 million could receive an additional benefit worth NIS 50,000-NIS 100,000 per year.

The party said that under the current system, relatively few companies receive tax incentives under the Law for the Encouragement of Capital Investments because they are unable to meet the requirement that 25% of their production be exported.

The proposed law would also establish a special tier under the Law for the Encouragement of Capital Investments, with corporate tax rates of between 0% and 4%, depending on a factory's location.

The party argued that the current system, under which the level of benefits is the same for communities classified as Priority Area A+, does not sufficiently encourage exporting manufacturers to relocate to or operate in communities along the confrontation line.

State-funded municipal tax discounts

The proposal would also provide state-funded municipal tax discounts of 45% for residential properties and 39% for businesses, with the state fully compensating local authorities, in a model similar to that used for communities surrounding the Gaza Strip.

According to the party's examples, a family paying NIS 8,000 annually in municipal taxes would save NIS 3,600, while a business paying NIS 100,000 would save NIS 39,000.

"Rehabilitating the confrontation line and propelling it forward is an important national mission," Bennett said. "We have built a team of people who know how to get things done and who are capable of repairing the country from day one, without a grace period. Nisan, a man of the North and one of the leaders of the struggle to rehabilitate this region, will lead this important fight from within, just as he has done as a citizen in recent years. Together, we will repair things and build a prosperous future here."

B'Yachad candidate Nisan Zeevi said the proposal would, for the first time, bring a Tekuma-style law to northern Israel.

"While everyone talks about the 'what,' we are also proposing the 'how': The Confrontation Line Law will enshrine the budgets and promises that were given to us and have not been fulfilled to this day. There are 360,000 residents along the confrontation line who need real solutions from the state, not more government decisions that are not implemented on the ground," Zeevi said.

"This is not another election promise to the residents of the North, but a declaration of commitment that will be implemented as soon as possible by the best people of action in the State of Israel. Together, we will repair things. Just as was done with the Tekuma Law in the South, we will advance a Tekuma law for the North that will change the face of the region for generations."