LINCOLN, Nebraska (KOLN) – Thanks to three new funding sources, Nebraska families now have more resources to help pay for child care.
The Child Care Tax Credit Act provides tax credits to businesses that donate to child care programs designed to improve access or affordability for families.
The law also provides a tax credit for parents or guardians with children under five who pay for an approved daycare center. Depending on family income and the number of children cared for, the credit can be up to $2,000.
The School Readiness Tax Credit Act allows child care providers and professionals to access funding based on participation in state-offered programs or enrollment of children with child care subsidies.
The two laws were created last year by a bill introduced by State Senator Eliot Bostar of Lincoln and took effect this year.
“For a state like Nebraska, which has significant labor problems, it is critical to maximize the number of people who want to enter the workforce and contribute to the growth and development of our state,” Bostar said. “Currently, the lack of child care is one of the main things holding us back.”
Elizabeth Everett, deputy director of the nonpartisan organization First Five Nebraska, said these credits are a significant improvement in child care in Nebraska.
She said Nebraska is now one of two states where these credits are available for child care facilities.
“This is the most comprehensive and robust tax credit program available in the United States for the child care industry and for parents,” Everett said. “This is a tremendous relief, not only for parents who need access to care, but also for child care workers and providers who are struggling financially to make ends meet.”
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