A bill planned for the Nebraska legislature would exempt 50% of military retirement pay from state taxation, including all of Nebraska’s military retirees.

As of 2017, this included more than 13,000 Nebraskans, Gov. Pete Ricketts said Friday.

The plan would amount to a debit of about $15 million per year to the state treasury, according to information in Ricketts’ announcement.

“Over the years as I have traveled Nebraska, military retirement tax relief has been a top priority for veterans and their families,” Ricketts said.  “We want to make Nebraska the most veteran-friendly state in the country and encourage our heroes to stay in our state and move here.”

Sen. Tom Brewer of Gordon, who is retired from the military, will introduce the bill. Brewer has called for the tax exemptions since he was elected.

“All six neighboring states around Nebraska do a better job of this, and we are missing out,” Brewer said.

“Fixing our income tax code so it encourages military retirees to settle in Nebraska after they leave the service is an outstanding idea,” he said.

Brewer said there is strong bipartisan support in the legislature for this idea.