NE LB998

Nebraska National Guard members can currently exclude 100% of qualifying income from state taxes for taxable years January 1, 2025 through December 31, 2026, covering 32 U.S.C. duty (drills, annual training, military schools, active guard reserve), federal dual-status technician employment, and state active duty status.

Starting January 1, 2027, the deduction expands to include income from serving in either 10 U.S.C. or 32 U.S.C. military duty status, broadening eligibility beyond the current 32 U.S.C.-only coverage.

The expansion adds federal active duty service under Title 10 of the U.S. Code to the list of qualifying income sources for Nebraska National Guard members.

Federal dual-status technician employment and state active duty status remain qualifying income sources under both the current and expanded provisions.

Amends Section 77-2716 of the Revised Statutes Supplement, 2025, introduced by Senator Andersen on January 13, 2026.