All Roll Calls
Yes: 89 • No: 0
NebraskaLB998109th Legislature 1st and 2nd SessionslegislatureWALLET
Change provisions relating to the state income tax deduction for members of the Nebraska National Guard
Sponsored By: Bob Andersen
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Nebraska Guard pay is tax-free
Beginning with 2025 tax years, Nebraska National Guard members exclude 100% of certain Guard pay from state income tax. The rule covers pay from 32 U.S.C. duty (drills, training, schools, AGR, ADOS), federal dual‑status technician work, and state active duty. This applies for tax years starting on or after January 1, 2025 and before January 1, 2027. Starting with 2027 tax years, pay from 10 U.S.C. duty also qualifies. The exclusion applies only to income that is included in your federal adjusted gross income.
New Nebraska deduction for eligible filers
For tax years beginning on or after January 1, 2026, Nebraska allows a deduction for amounts permitted under section 77‑27,242. Individuals, companies, and trusts that qualify under that section can reduce Nebraska taxable income. The exact amounts and who qualifies follow that section’s rules.
New tax break for qualifying employees
For tax years beginning on or after January 1, 2025, if you meet Nebraska’s definition of a qualifying employee, you can reduce your federal adjusted gross income by the amount allowed under state law. This deduction lowers your Nebraska taxable income. Eligibility is defined in section 77‑3108, and the allowed amount is set in section 77‑3111.
Gold and silver gains exempt, losses not deductible
Starting January 1, 2025, you subtract net capital gains from selling gold or silver bullion from Nebraska taxable income. You do not get this subtraction if the gain comes from a taxable distribution from a retirement plan that holds bullion. Also starting in 2025, you must add back any net capital losses from bullion sales to Nebraska income, so those losses are not deductible. This add‑back does not apply if the loss comes from a taxable distribution from a retirement plan that holds bullion. This lowers Nebraska tax in gain years and can raise it in loss years.
Sponsors & Cosponsors
Sponsor
Bob Andersen
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/9/2026
Final Reading
Yes: 49 • No: 0
legislature vote • 3/30/2026
Vote
Yes: 40 • No: 0 • Other: 9
Actions Timeline
Approved by Governor on April 14, 2026
4/17/2026legislaturePresident/Speaker signed
4/10/2026legislaturePresented to Governor on April 10, 2026
4/10/2026legislatureDispensing of reading at large approved
4/9/2026legislaturePassed on Final Reading 49-0-0
4/9/2026legislaturePlaced on Final Reading
4/7/2026legislatureKauth FA654 withdrawn
4/2/2026legislatureAdvanced to Enrollment and Review for Engrossment
4/2/2026legislaturePlaced on Select File
3/31/2026legislatureAdvanced to Enrollment and Review Initial
3/30/2026legislaturePlaced on General File
3/4/2026legislatureNotice of hearing for February 19, 2026
2/11/2026legislatureReferred to Revenue Committee
1/15/2026legislatureKauth FA654 filed
1/14/2026legislatureDate of introduction
1/13/2026legislature
Bill Text
Introduced
4/17/2026
Enrolled / Slip Law
Final / Enacted