This bill proposes an amendment to section 77-2716 of the Revised Statutes Supplement, 2025, to exempt income received by certificated teachers, paraeducators, and paraprofessionals from state income taxation. This significant change aims to provide financial relief to these educational professionals, encouraging their retention and recruitment in the education sector. The bill also includes a provision to repeal the original section, reflecting a shift in the tax treatment of this income. The new legal language specifically states that the income of these educational professionals will not be subject to state income tax, highlighting the importance of supporting educators and recognizing their contributions to the community.

In addition to the tax exemption for educators, the bill introduces amendments to the tax code that allow individuals to subtract certain income types from their federal adjusted gross income. This includes amounts received as student loan repayment assistance under the Teach in Nebraska Today Act, health insurance premiums paid by retired firefighters or law enforcement officers, and annuities from the Civil Service Retirement System. The bill also provides tax relief for members of the Nebraska National Guard and addresses medical debt relief by permitting reductions in federal adjusted gross income for discharged medical debt. Furthermore, it establishes provisions for future taxable years, including the exclusion of income for certificated teachers and paraprofessionals starting in 2027, and ensures proper treatment of capital gains and losses from the sale of gold or silver bullion.

Statutes affected:
Introduced: 77-2716