Nebraska Homestead Exemption. Nebraska Homestead Exemption Application, Form 458.Nebraska offers different property tax exemptions for veterans at different levels of disability. A statebystate guide to VA property tax exemptions, deductions and credits available to former service members with VA disability ratings. In 2020, LB 153 was enacted allowing retired military in Nebraska to exempt 50 percent of their military retirement pay from state income taxes. To apply for the exemptions, veterans will need to submit their VA Disability Letter along with other documentation to the Assessor's Office in person. If you're a veteran applying for the exemption, you must fill out the Property Tax Exemption Application for Qualifying Disabled Veterans form. Douglas County has additional exemptions for 62 years of age or older, disabled veterans or their surviving spouses, and totally disabled homeowners. A disabled veteran is eligible for a portion of the maximum exemption amount that is equal to the percentage of their disability, as set forth in the VA. Disabled Veteran License Plates: Veterans with disabilities can receive free Disabled Veteran license plates.