Governor Ricketts Signs Military Retirement Allowance Tax Relief Act

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Press release:

Governor Ricketts Signs Military Retirement Allowance Tax Relief Act

Governor Ricketts (front and center for gold), State Senators and Veterans

at today’s signing ceremony for LB 387.

The video of the ceremony is available by Click here.

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

“This is a great victory for our state, for the job creators of Nebraska and for the military families looking to relocate to Nebraska,” said Governor Ricketts. “Thank you to the Legislature for building on our past work and continuing to make our state more veteran and more military-friendly.”

“We want veterans, military retirees and their families to come to Nebraska and stay in Nebraska,” said John Hilgert, director of the Nebraska Department of Veterans Affairs. “We continue to make Nebraska more veteran and more military-friendly, and the broad support for this bill from the legislature to the governor’s office shows that our state is united and genuinely committed to this goal.

Earlier this spring, the governor signed Bill LB 389, making it faster and easier for spouses of military personnel licensed in another state to obtain a teaching permit after moving to Nebraska.


In recent years, Governor Ricketts has worked with the Legislature and veterans groups to support military families and Nebraska veterans. Here are some examples of how Governor Ricketts is making Nebraska a more veteran-friendly state:

  • Military Spouse Transition Program launched in April 2021 to help military spouses relocate to Nebraska to identify employment opportunities in state government.
  • The Veterans SkillBridge Initiative launched in April 2021. Overseen by the Nebraska Department of Economic Development, the program creates bonds between the military and Nebraska employers during their last 180 days of service. This gives participants a chance to explore the best solution for their specific talents and interests after transitioning out of military service.
  • Expansion of the State of Nebraska’s hiring preference to include military spouses.
  • Signed LB 340 to make the Department of Veterans Affairs a One Stop Shop for Veterans Benefits and Veterans Homes.
  • Creation of five additional military honor license plates to recognize the service of members of the armed forces reserve.
  • Reciprocity offered to military spouses nationwide by updating the language for adoption of the Compact Nurse Licensure Compact, which allows nurses to have a multi-state license.
  • Signed LB 12th which allows active duty military members or their spouses to be licensed real estate agents in Nebraska without paying a license fee if they have a valid real estate agent license in another state.
  • Signed LB 115 which allows military families reassigned to Nebraska to register on a preliminary basis in a school district.
  • Signed LB 122nd, allowing a veteran, their spouse or dependents to qualify as residents for the purposes of post-secondary education if the veteran is in vocational rehabilitation.
  • Authorized DHHS, with the recommendation of the appropriate council, to issue temporary licenses for professions regulated under the Uniform Military Spouse Accreditations Act.
  • Plans to expand the Eastern Nebraska Veterans’ House were recently approved by the US Department of Veterans Affairs and will be nominated soon. The expansion will create 30 new specialty care beds, convert 30 semi-private rooms to 24 private rooms and create space for an adult day health care program. The share of state funding – 3.3 dollars. million dollars – was included in the governor’s budget and approved by the Legislature in 2019.

Video of today’s signing ceremony is available through Click here.


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