Supporting Nebraska’s workforce: How employers can help parents access the Child Care Tax Credit

by | Dec 18, 2024

Nebraska’s workforce is among the most reliable and industrious in the nation. It’s not just the engine that drives our economy, it represents the core values we pass to the next generation of Nebraskans: show up, work hard, provide for your family and grow your community. However, many hardworking parents face a mounting challenge: the cost of child care for their youngest children while they’re on the job.

Recognizing this, Nebraska lawmakers took a significant step in 2023 by approving a tax credit package that includes a refundable Child Care Tax Credit (CCTC-R). This credit provides qualifying families with a $1,000 to $2,000 credit per child (age 5 or younger) in care, prioritizing middle- and lower-income households. With $15 million allocated annually for this credit, thousands of Nebraska’s working parents stand to benefit—but only if they know this financial support exists.

This is where our state’s business community can make an impact. Employers across industries—from construction and manufacturing to logistics and food service—are uniquely positioned to support their employees by raising awareness of this critical tax credit.

How businesses can make a difference 
Here are three simple yet impactful ways employers can help their workforce by spreading the word about the refundable Child Care Tax Credit:
1.    Leverage workplace communication channels
Use internal tools such as pay stub inserts, bulletin boards, newsletters, HR emails and social media to share information about the tax credit. Connecting employees to the resources they need can significantly ease their financial burdens.
2.    Offer application support
The Nebraska Department of Revenue is developing an electronic application portal for the tax credit applications that will go live at the turn of the year. Consider designating a space at your workplace where employees can access computers to complete their applications. You could also host tax preparation volunteers during lunch hours or shift changes to assist with the process. Keep in mind how many of your employees might benefit from bilingual support while filling out their applications.
3.    Encourage employer collaboration
Teaming up with other businesses can amplify efforts to inform employees about the tax credit. You can share your success stories with local news media, contribute to the Chamber’s First Call newsletter, or use your company’s social media platforms to inspire other members of the business community to get involved.

Getting started
The application window for the refundable Child Care Tax Credit opens January 2, 2025. Now is the time to prepare. Visit NebraskaChildCareTaxCredit.org or the Nebraska Department of Revenue’s webpage on the Child Care Tax Credit Act to learn more. These sites offer a wealth of resources, including printable handouts, posters and social media assets available in both English and Spanish.

First Five Nebraska is leading this campaign to ensure eligible families benefit from the refundable Child Care Tax Credit. By joining us, businesses can play a crucial role and gain public recognition as a campaign partner. For more information, contact Michael Medwick, campaign manager, at mmedwick@FirstFiveNebraska.org.

Let’s work together to support Nebraska’s hardworking parents, strengthen our workforce and secure a brighter future for the next generation.

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