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Nebraska – Propose $1000 Child Tax Credit aims to “help parents close the gap on child tax credit”

Child Tax Credit 2023 Amount: How much will you get per child on taxes?
Child Tax Credit 2023 Amount: How much will you get per child on taxes?

Lincoln Neb – Close to 900,000 Nebraskans would benefit from the proposed state child tax credit. Nebraskan legislator is proposing a similar state-level benefit to assist parents when the federal pandemic-boosted child tax credit decreases from $3,600 to $2,000 per kid.

Proposed Child Tax Credit From Nebraska To Give Up To $1,000

Proposed Child Tax Credit From Nebraska To Give Up To $1,000 (photo via belchonock / Depositphotos)

The majority of parents in Nebraska would receive $1,000 per kid as a child tax credit under Legislative Bill-294, which was proposed by Danielle Conrad, a state senator from Lincoln.

Conrad said that it is time to pass a program that provides essential assistance for hundreds of thousands of children and Nebraskans given our State’s solid financial position.

Read More: The Child Tax Credit In 2023: Will It Exist?

Families would be eligible for refundable tax credits of $1,000 per kid under LB 294 if their combined annual income was up to $110,000 for married couples or $92,500 for the head of household. Children would be eligible for the credits from birth until they are 18.

Photos: 2023 Nebraska legislative session

The Nebraska Legislature reconvened on Wednesday, Jan. 4, 2023.
(EILEEN T. MESLAR, WORLD-HERALD)

Conrad estimated that the credits would help around 478,000 Nebraska youngsters, or 81% of those in the eligible age bracket. Sen. Lou Ann Linehan of Elkhorn asked Conrad about modifying the bill to focus on young children or lower-income households, and Conrad indicated she would be open to the discussion.

According to the legislative fiscal office, as submitted, her proposal would cost the state roughly $380 million every year. Due to the fact that the first year would span 17 instead of 12 months, the price would be $513 million.

 

Photos: 2023 Nebraska legislative session

Nebraska State Sen. Danielle Conrad speaks to State Sen. to Tony Vargas as the Nebraska Legislature reconvened in Lincoln on Wednesday, Jan. 4, 2023. (photo by:
EILEEN T. MESLAR/WORLD-HERALD)

 

Several organizations, including the Nebraska Catholic Conference, the OpenSky Policy Institute, and the Holland Children’s Institute, gave testimony in favor of the legislation at the hearing on Wednesday. No witnesses spoke against the motion.

Speaking in favor of the legislation on behalf of the Holland Children’s Movement, Garret Swanson claimed that discussions with others had persuaded him that a child tax credit would be well-liked. Additionally, he added that the credit might enable Nebraska to outperform its competitors and draw in more families.

The Nebraska Catholic Conference’s executive director, Tom Venzor, supported the legislation because it would show that society supports families and the family unit. He added that Nebraska needs to help families so they “may say yes to life” in an era where states control abortion.

Additionally, the law would offer tax credits to individuals or organizations that make donations to programs for early childhood education. Employees in child care who have worked at a qualified program for at least six months would be eligible for tax credits under a third provision of the plan.

The Earned Income Tax Credit for the state would rise from 10% to 17% of the federal amount under Conrad’s LB 295. Low-income working individuals can take advantage of the refundable tax credit.

Read More: Child Tax Credit: How Can The Updated CTC Rules In 2023 Affect Parents?

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