Provide an income tax deduction to retired firefighters and law enforcement officers for annual retirement benefits
Summary
LB930 would amend Nebraska income tax law to create a deduction for certain annual retirement benefits received by retired firefighters and certified law enforcement officers. The bill adds a new subtraction from federal adjusted gross income for a retired individual who was employed full time as a firefighter or certified law enforcement officer for at least 20 years and is at least 60 years old at the end of the tax year. The deduction is capped at up to $100,000 per year in annual retirement benefits included in federal adjusted gross income.
The bill also repeals the original section of statute it is replacing, while leaving in place the broader Nebraska income tax framework and many existing subtraction and addition adjustments for other types of income. In effect, it creates a targeted state income tax preference for a specific class of public safety retirees, reducing their Nebraska taxable income and, depending on their income level, potentially lowering their state income tax liability.
Impact
LB930 would directly amend Nebraska Revised Statutes Supplement section 77-2716, the state’s principal income tax modification statute, by adding a new subtraction for qualifying firefighter and law enforcement retirement benefits. It would affect retired public safety personnel who meet the service and age requirements, and it would reduce taxable income for those taxpayers by allowing up to $100,000 of annual retirement benefits to be excluded from Nebraska income tax calculations. The bill would also repeal the original version of the affected section, making the new language the operative law if enacted.
Sentiment
The available record shows no committee transcript, recorded votes, or floor debate excerpts, so there is no documented public discussion to gauge detailed sentiment. Based on the bill’s caption and structure, the measure appears to be a supportive tax-relief proposal aimed at retired first responders. The final legislative status of indefinitely postponed indicates that, despite the favorable policy goal for the targeted group, the bill did not advance to enactment.
Contention
Because there are no transcripts or votes provided, specific objections are not documented in the record supplied. The likely points of contention would center on the fiscal cost of creating a new income tax deduction, the fairness of granting a special tax benefit to one category of retirees over others, and the eligibility limits tied to years of service, age, and the $100,000 cap. Support would be expected from advocates for firefighters and law enforcement retirees, while fiscal conservatives or lawmakers concerned about tax-base erosion may have been more cautious.