This bill amends section 77-2716 of the Revised Statutes Supplement, 2025, to introduce an income tax deduction for retired firefighters and law enforcement officers. Specifically, it allows these individuals to deduct their annual retirement benefits from their federal adjusted gross income, which can lower their taxable income and overall tax liability. The bill also includes a provision to repeal the original section of the law, signifying a substantial update to the tax code concerning retirement benefits for these public service professionals.

In addition to the primary focus on retired firefighters and law enforcement officers, the bill introduces various amendments to the tax code that affect other groups and circumstances. It permits individuals to subtract amounts received as student loan repayment assistance, health insurance premiums paid by retired public service professionals, and annuities from the Civil Service Retirement System. Furthermore, it provides tax relief for Nebraska National Guard members and addresses medical debt by allowing reductions in federal adjusted gross income for discharged medical debt and contributions to the Medical Debt Relief Fund. A notable new insertion allows eligible retired firefighters and law enforcement officers to reduce their federal adjusted gross income by up to $100,000 in annual retirement benefits starting in 2027.

Statutes affected:
Introduced: 77-2716