This bill proposes an amendment to section 77-2716 of the Revised Statutes Cumulative Supplement, 2024, focusing on the taxation of tip income. It introduces new legal language that allows individuals to subtract tip income from their federal adjusted gross income starting January 1, 2025. This adjustment aims to provide clarity and fairness in the taxation of income derived from tips, reflecting a broader effort to modernize Nebraska's tax code in response to the evolving nature of income sources in the service industry. The bill also includes provisions to repeal the original section, indicating a significant change in how tip income is treated under state tax law.

In addition to the adjustments for tip income, the bill outlines several other amendments to the tax code effective for various taxable years from January 1, 2023, through January 1, 2026. These include allowing deductions for student loan repayment assistance, health insurance premiums for retired firefighters or law enforcement officers, and certain military service income. The bill also addresses the treatment of capital gains and losses from the sale of gold or silver bullion, specifying that net capital losses will be added to federal adjusted gross income while net capital gains will be subtracted, with certain exceptions.

Statutes affected:
Introduced: 77-2716