Child care-focused tax credit package
advances in Legislature

As Nebraska’s 108th Legislature approaches the home stretch of the 2023 session, the child care tax credit package originally introduced by State Senator Eliot Bostar, District 29, as LB318 has reached Select File as an amendment to LB754. It now enters the second stage of floor debate during which lawmakers will decide whether to advance the bill to Final Reading, amend further, postpone or take no action.

The legislation introduces the Child Care Tax Credit Act and reinstates the School Readiness Tax Credit Act. It provides tax credits to offset the burden of child care costs on Nebraska families’ budgets, encourages private sector contributions to enhance and expand child care opportunities, offers financial incentives for the early childhood workforce and supports programs serving children through the child care subsidy. 

Key changes to the amended version of LB318 encompassed in LB754 include:

  • The Child Care Tax Credit Act now focuses its refundable credit on households with an income of $150,000 or less, with special provisions for families at or below 100% of the Federal Poverty Level
  • Private sector contributions to child care may qualify for a 100% nonrefundable credit if the contribution applies to programs in designated economically disadvantaged communities
  • The School Readiness Tax Credit Act would offer increased refundable tax credits ranging from $2,300 to $3,500 for child care employees or self-employed providers
  • The nonrefundable credit available through the School Readiness Tax Credit Act would be available to providers beginning at Step 1 in Step Up to Quality

Here's the latest information on other early childhood bills:

  • LB319 (Senator Eliot Bostar): This legislation is designed to increase child care availability and strengthen the early childhood professional workforce through one-time funding for Sixpence, the WAGE$ program and child care capacity-building grants. Read FFN's testimony | Read FFN's policy brief

  • LB75 (Senator Tony Vargas, District 7): The Health and Human Services Committee amended LB75 and LB419 into LB570 which was then unanimously advanced to General File, the first round of floor debate. LB75 allows review of rates, trends and causes of life-threatening incidents during childbirth in Nebraska and LB419 extends Medicaid postpartum coverage from 60 days to one year. Read FFN's testimony

  • LB35 (Senator Wendy DeBoer, District 10): State senators amended LB35 into LB227 and advanced the bill to the second round of debate. The legislation provides a three-year extension of the child care subsidy eligibility level for families up to 185% of the Federal Poverty Level. Read FFN's testimony

Follow 70 early childhood bills introduced in the Legislature this year on FFN's Track Legislation web page, with bill summaries, current status, introducer and more. Learn more about legislation we're actively advocating for on our Policy Priorities page.

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