Child care-focused tax credit package advances in the Legislature

April 2023

Child care-focused tax credit package

advances in Legislature

As Nebraska’s 108^th 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

Read FFN's policy brief on the Child Care Tax Credit Act and the School Readiness Tax Credit Act

Read "A crisis in child care," Senator Bostar's op-ed in support of LB318 published in the Lincoln Journal-Star

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

LB114 (Senator Tony Vargas): LB114 provides increased funding for voluntary evidence-based home visiting for Nebraska families at risk to align with recent federal law changes. FFN testified in support of the bill before the Appropriations Committee. Read FFN's LB114 testimony | Read FFN's policy brief | Read the guest blogpost by Prevent Child Abuse America: LB114 would increase federal funding for home visiting in Nebraska

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.

Follow FFN on Facebook, Twitter and LinkedIn for bill updates.

Policy Leadership Academy graduates are movement builders

Congratulations to the 23 graduating members of the Early Childhood Policy Leadership Academy on completing the 2022-23 program in North Platte in March. During the past six months this diverse and dedicated group sharpened their strategic advocacy skills and learned how to create and leverage local movements to help drive early childhood policy change. Read more

The ‘Iron Triangle’: Why

child care programs struggle to break even

Given the high prices parents pay for child care, it is often assumed that child care programs must be very profitable. However, this is almost never the case. In fact, just to break even, a program must operate consistently within the constraints of what child care business analysts call the 'Iron Triangle'. These include full enrollment in every classroom every day; collecting tuition and fees, in full and on time; and ensuring revenues cover per-child costs. Read more

FFN exhibits at

Lincoln Children's Museum provider event

FFN staff enjoyed meeting and talking with many of the 200+ child care providers who attended a Lincoln Children's Museum gathering this month.

We had many conversations with booth visitors about the challenges facing child care professionals as well as opportunities to advocate on behalf of the early childhood workforce.

Thank you, State Senator

John Stinner

Congratulations to former State Senator John Stinner and his wife, Rita, on receiving the Distinguished NEBRASKALander Award.

Senator Stinner was active in advancing early childhood issues throughout his tenure in the Legislature, served as an Early Childhood Fellow in a national fellowship program and was instrumental in passing important early childhood legislation. LR390 studied and reported on the impact of the pandemic on Nebraska's early childhood care and education system; LB342 increased the annual state appropriation for Sixpence by $2.5 million and an amendment to last year's state budget bill provided $4 million in ARPA funding to assist Nebraska communities with starting or expanding child care programs. We appreciate Senator Stinner’s leadership in supporting our state's young children and their families!

In the photo are Senator and Rita Stinner (right) and FFN Policy Advisor Mitchell Clark and his wife, Krista. Mitch served as Senator Stinner's legislative aide before joining FFN.

FFN Director Jason Prokop moderated a panel at the recent Do More Good conference with child care provider and Policy Leadership Academy graduate Betsy Tonniges and Hudl's Jasmine Kingsley and Mark Ketcham. Their conversation focused on partnering to support early childhood development as well as employees' child care needs.

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