NORFOLK- The Legislature gave 41-0 final approval Thursday to a bill that will incrementally reduce the state income tax on Social Security income with a goal of total exemption by 2030. The bill (LB64), sponsored by Sen. Brett Lindstrom of Omaha, would achieve a 50% tax reduction by 2025 with an expressed intention to achieve 100% reduction by 2030, subject to review by a future legislative session. The built-in "guardrail" that allows a future Legislature to decide whether to continue with the annual 10% increased tax reduction after 2025 was attached to the bill by Sen. John Stinner of Gering, chairman of the Legislature's Appropriations Committee. Reduction in annual state revenue is estimated to grow to $73.8 million in the fifth year and then incrementally climb to $168 million in the 10th year with full exemption.

The built-in "guardrail" that allows a future Legislature to decide whether to continue with the annual 10% increased tax reduction after 2025 was attached to the bill by Sen. John Stinner of Gering, chairman of the Legislature's Appropriations Committee. Reduction in annual state revenue is estimated to grow to $73.8 million in the fifth year and then incrementally climb to $168 million in the 10th year with full exemption.

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