Military retirement benefits tax exemption in Nebraska approved

The Legislature on Wednesday handed 47-0 final approval to a bill that will grant a state income tax exemption for military retirement benefits, but not until senators had revisited a bitter debate that divided them on Tuesday night.

Sen. Machaela Cavanaugh of Omaha filed a motion to return the bill (LB387) to the Revenue Committee, challenging senators to consider whether they were willing to provide this tax break while refusing to approve increased funding to help 850 families provide for children with developmental disabilities.

Cavanaugh's bill (LB376) to do that was trapped by a filibuster after extended debate Tuesday night when a motion to free the proposal for a vote fell three senators short of the 33 required to end debate.