This bill amends section 77-2716 of the Revised Statutes Supplement, 2025, to enhance the state income tax deduction for members of the Nebraska National Guard. The primary modification allows these individuals to exclude 100% of their military retirement benefit income from their federal adjusted gross income for taxable years beginning on or after January 1, 2022. This change replaces the previous system, which permitted only a partial exclusion based on various factors such as the year of election and the individual's age. Additionally, the bill repeals the original section governing these deductions, simplifying the process for National Guard members to access the tax exclusion.

Beyond the provisions for National Guard members, the bill introduces several amendments to the tax code, including allowing individuals to subtract amounts received as student loan repayment assistance under the Teach in Nebraska Today Act and health insurance premiums paid by qualifying retired firefighters or law enforcement officers. It also permits reductions in federal adjusted gross income for medical debt discharged under the Medical Debt Relief Act and contributions to the Medical Debt Relief Fund. Furthermore, the bill addresses capital gains and losses from the sale of gold or silver bullion, specifying how these should be treated in relation to federal adjusted gross income. Overall, the bill aims to provide greater financial relief and support to military personnel and other qualifying individuals in Nebraska.

Statutes affected:
Introduced: 77-2716