This bill proposes an amendment to section 77-2716 of the Revised Statutes Cumulative Supplement, 2024, to introduce an income tax adjustment for income received from overtime compensation, aiming to provide a more equitable tax treatment for individuals earning additional income through overtime work. The bill seeks to reduce the overall tax burden for these workers and reflects a broader effort to address income disparities in Nebraska. Additionally, the bill includes a repeal of the original section, indicating a significant restructuring of income tax adjustments.

Furthermore, the bill introduces several amendments to the tax code regarding federal adjusted gross income, including provisions for student loan repayment assistance, tax relief for retired firefighters and law enforcement officers, and exclusions for members of the Nebraska National Guard. Notably, it allows individuals to subtract income received from overtime compensation under the Fair Labor Standards Act from their federal adjusted gross income starting in 2025. Other provisions address medical debt and the treatment of capital gains and losses from the sale of gold or silver bullion, enhancing the overall tax benefits for various groups of individuals.

Statutes affected:
Introduced: 77-2716