Pay you receive while serving on active duty in the U.S. Armed Forces can be subtracted from your Wisconsin taxable income if you are a Wisconsin resident. Pay for inactive duty in a reserve component is not covered and stays taxable.
There is nothing to apply for. Claim the subtraction on your Wisconsin income tax return and leave your active duty pay out of the income you report.
Your W-2 and Leave and Earnings Statements showing the active duty pay, kept with your tax records.