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State lawmakers push to exempt retired military pay from income tax

State lawmakers pushing to help retired military veterans.
State lawmakers pushing to help retired military veterans.(Jared Austin)
Published: Jan. 29, 2021 at 7:55 PM CST
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LINCOLN, Neb. (KOLN) - State lawmakers are pushing to keep retired military veterans in the state by exempting their military pay from income taxes.

Senator Tom Brewer passed a similar bill to this last session, but this one will double its efforts.

Currently, in Nebraska, there are over 14,000 military retirees. Senator Brewer hopes to fully exempt military retired pay from state income tax, compared to the bill he passed the last session which only exempted 50% of it.

Senator Brewer said this will provide better incentives for retired veterans to want to stay in Nebraska.

“Nebraskans serve in many different branches and components of the U.S. military around the world. This bill will result in many of these people coming back to Nebraska,” Sen. Brewer said.

He said at this point military retirees are moving to other neighboring states, including Iowa and South Dakota because they have better tax breaks for veterans.

Gov. Ricketts is also pushing for this bill, as he wants to make Nebraska more veteran-friendly. A Nebraska Veteran said this has been a multi-decade push.

“For the well-being of all Nebraska citizens and its economy, actions like this are needed to keep Nebraska more competitive and retaining and attracting more people into Nebraska to help fuel economic growth,” said Ronald Dupell, a retired military veteran.

Nobody publicly opposed the bill on Friday. According to the state, if passed this legislation would cost the state over $14 million once it’s complete. Gov. Ricketts said the state can still make this proposed budget work.

The governor also said having the Space Force Command Center in Nebraska is still a possibility. He said this legislation would make the state more attractive for a possible command center.

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