Gov. Ricketts Signs Legislation for Military Retirement Pay Tax Relief

Press Release

LINCOLN -- Today, Governor Pete Ricketts signed Legislative Bill (LB) 387 into law, allowing 100% of military retirement pay to be exempted from Nebraska income tax starting January 1, 2022. The bill was sponsored by Senator Tom Brewer of Gordon at the request of Gov. Ricketts and prioritized by Senator Tim Gragert of Creighton. It passed the final reading with a 47-0 vote.

"This is a great win for our state, for Nebraska's job creators, and for military families looking to put down roots in Nebraska," said Gov. Ricketts. "Thank you to the Legislature for building on our previous work and for continuing to make our state more veteran and military-friendly."

"We want veterans, military retirees, and their families to come to Nebraska and to stay in Nebraska," said Nebraska Department of Veterans' Affairs Director John Hilgert. "We continue to make Nebraska more veteran and military-friendly, and the broad support for this bill from the Legislature to the Governor's Office shows that our state is united and truly committed to that goal."

Earlier this spring, the Governor signed LB 389 into law, which makes it quicker and easier for military spouses licensed in another state to obtain a teaching permit after moving to Nebraska.

GOV. RICKETTS' RECORD OF SUPPORT FOR NEBRASKA'S MILITARY FAMILIES & VETERANS

Over the past few years, Governor Ricketts has worked with the Legislature and veterans' groups to support Nebraska's military families and veterans. Below are a few examples of how Governor Ricketts is making Nebraska a more veteran-friendly state:

Launched the Military Spouse Transition Program in April 2021 to help military spouses moving to Nebraska to identify job opportunities in state government.
Started the Veterans' SkillBridge Initiative in April 2021. Overseen by the Nebraska Department of Economic Development, the program creates connections between military members and Nebraska's employers during their final 180 days of service. This gives participants a chance to explore the best fit for their specific talents and interests after transitioning out of military service.
Expanded the hiring preference for the State of Nebraska to include spouses of service members.
Signed LB 340 to make the Department of Veterans' Affairs a one-stop shop for both veterans' benefits and veterans' homes.
Created five additional Military Honor License Plates to recognize the service of members of the reserves of the armed forces.
Provided reciprocity for military spouses all over the country by updating the language for the adoption of the Enhanced Nurse Licensure Compact, which allows nurses to have one multi-state license.
Signed LB 12e which allows active-duty military members or their spouses to be licensed realtors in Nebraska without paying a licensing fee if they have a valid realtor's license in another state.
Signed LB 115 which allows military families reassigned to Nebraska to preliminarily enroll in a school district.
Signed LB 122e, allowing a veteran, their spouse, or dependents to qualify as residents for post-secondary tuition purposes if the veteran is receiving vocational rehabilitation.
Authorized DHHS, with the recommendation of the appropriate board, to issue temporary licenses for occupations regulated under the Uniform Credentialing Act to military spouses.
The Eastern Nebraska Veterans' Home expansion plans were recently approved by the U.S. Department of Veterans' Affairs and will soon be going out to bid. The expansion will create 30 new skilled care beds, convert 30 semi-private rooms into 24 private rooms, and create space for an adult day health care program. The State's portion of the funding--$3.3. million--was included in the Governor's budget and approved by the Legislature in 2019.

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