Legislators in Nebraska aim to help working families deal with inflation by addressing the expensive childcare. Nebraska Examiner reported three bills were proposed during the hearing on February 8 by the Revenue Committee. The proposed bills are expected to help low- to middle-income families after the rising inflation in the state, resulting in increasing food prices and other necessities.
Legislative Bill 294
Lincoln Senator Danielle Conrad introduced the first bill, Legislative Bill 294. Under this bill, taxpayers with dependents below 18 years old who have a Social Security number or taxpayer identification number are eligible for the state tax credit of $1,000 per child. Conrad said about 81% of Nebraska children would benefit from the bill, as reported by Unicameral Update.
Legislative Bill 318
The second bill, LB 318, was proposed by Lincoln Senator Eliot Bostar, which provides a tax credit ranging from $1,000 to $5,000 a year per child, depending on family income. It offers tax credits for businesses or individuals who contribute to improving childcare operations. Tax breaks will also be provided for childcare workers.
Lincoln Senator Eliot Bostar proposed Legislative Bill 318, which tax credits to individuals with dependents and businesses and individuals who contribute to childcare operations. (Photo: Strong Towns)
Also Read: Child Tax Credit: Can You Claim CTC Immediately Under New Rules?
Legislative Bill 295
The last bill proposed was also introduced by Senator Conrad, LB 295. This bill proposed increasing the state’s current earned income tax credit for working families. The proposed legislation would increase federal credit from 10% to 17%. Conrad estimated that credit for one qualifying child would increase from $373 to $635.
Lincoln Senator Danielle Conrad proposed Legislative Bills 294 and 295 to aid working parents with expensive childcare. (Photo: ACLU of Nebraska)
The state’s major businesses supported Bostar’s bill, along with agricultural organizations and First Five Nebraska, an advocate organization for early childhood education programs. The organization estimated that 75% of Nebraska’s children aged six and below have both parents employed. They said the bill is a meaningful step in addressing the “broken” childcare system.
Meanwhile, Conrad’s child tax credit was supported by the OpenSky Policy Institute, the Holland Children’s Movement, Nebraska Appleseed, and the Nebraska State Education Association. Diane Amdor of Nebraska Appleseed said, “There is no better way to use the state’s current fiscal surplus than to give it back to our children.”
Read More: Child Tax Credit: How Can the Updated CTC Rules in 2023 Affect Parents?
