Tax deduction, tuition waiver for law enforcement officers approved

Senators passed a bill April 12 that provides a state income tax deduction to retired law enforcement officers and a full tuition waiver for other eligible officers.

Under LB1273, introduced by Lincoln Sen. Eliot Bostar, a retired individual who was employed full time as a certified law enforcement officer for at least 20 years and who is at least 60 at the end of the taxable year may reduce their federal adjusted gross income by the amount of health insurance premiums they paid during the taxable year.

The change goes into effect in tax year 2023.

The bill includes the provisions of LB1272, introduced by Sen. Steve Halloran of Hastings, which increase a current tuition waiver for eligible law enforcement officers from 30 percent to 100 percent. The waiver applies to resident tuition charged by any state university, college or community college.

The state Department of Revenue estimates that LB1273 will reduce state general fund revenue by $176,000 in fiscal year 2023-24 and $187,000 in FY2024-25.

The bill passed on a vote of 47-0.