Awareness Campaign Underway to Educate Nebraskans on New Child Care Tax Credits

LINCOLN–(KFOR Aug. 27)–First Five Nebraska has launched a campaign for people with children in daycare and those providers to get tax credits.

Thanks to passage of LB 754 by the Nebraska Legislature in 2023, the Child Care Tax Credit Act and the School Readiness Tax Credit Act provides a tax credit for child care costs based on family income and business tax breaks and donor tax breaks for giving, which would boost child care operations, and a tax break for child care workers.

“These tax credits are incredible accomplishment for the child care field,” said Elizabeth Everett, who is the deputy director for First Five Nebraska, a non-profit organization that provides early childhood care and development services.

The Child Care Tax Credit Act also provides a non-refundable credit for taxpaying individuals, businesses or other entities who make a qualifying contribution to strengthen local child care options. The non-refundable credit structure especially encourages contributions to develop child care in Nebraska Opportunity Zones, where communities face the greatest economic challenges, and to support programs that serve children enrolled in the child care subsidy program.

Parents whose household income is equal to or less than $75,000 may qualify for a $2,000 refundable credit per enrolled child. Households with annual income between $75,000 and $150,000 may qualify for a $1,000 refundable credit per enrolled child.

With the School Readiness Tax Credit, self-employed providers and program staff that are eligible could get a $2,300 to $3,500 refundable credit.

Read more by clicking the link below.

Nebraska Child Care Tax Credit and School Readiness Tax Credit