LINCOLN—In a significant expansion of benefits for Nebraska’s veterans, the state is poised to offer a motor vehicle tax and fee exemption to all disabled and blind veterans starting January 1, 2026.This change, aimed at easing financial burdens on those who have served, allows eligible veterans to exempt one vehicle from motor vehicle taxes and fees, potentially saving hundreds of dollars annually on registration renewals.
The exemption stems from recent legislative updates, including LB650, which redefines eligibility to align with federal standards under 5 U.S. Code § 2108.
Previously limited to veterans with 100% service-connected disabilities, the program now includes any veteran with a service-connected disability rating from the U.S. Department of Veterans Affairs (VA), even those rated at 0%, as well as those receiving compensation, disability retirement benefits, or pensions from the VA or military departments. Blind veterans, defined as those with severe sight impairments that severely limit daily activities and are recognized by the VA, are also fully eligible, provided they were honorably discharged.
