LINCOLN, Neb. (KOLN) – Nebraska families now have more resources to help them afford childcare, thanks to three new funding sources.
The Child Care Tax Credit Act offers tax credits to businesses that donate to childcare programs designed to increase access or affordability for families.
The act also provides a tax credit for parents or guardians with children under five who pay for licensed childcare, potentially offering up to $2,000 depending on family income and the number of children in care.
The School Readiness Tax Credit Act allows childcare providers and professionals to access funds based on participation in state-offered programs or for accepting children on childcare subsidies.
The two acts were created by legislation introduced last year by State Senator Eliot Bostar of Lincoln, and went into effect this year.
“It is essential for a state like Nebraska, which has significant workforce challenges … to be able to maximize the population that is interested in going into the workforce and contributing to the growth and development of our state,” Bostar said. “Currently one of the primary drivers that’s holding us back is the lack of child care access.”
Elizabeth Everett, deputy director of the non-partisan First Five Nebraska said these credits are a significant boost for the childcare space in Nebraska.
She said Nebraska is now one of two states with these credits available to childcare providers.
“This is the most expansive and most robust tax credit program available for the child care industry and for parents in the United States,” Everett said. “This is a huge relief not only for those parents needing access to care, but also for those child care employees and providers that have a hard time financially making ends meet.”
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