Tax credits aim to ease financial burden of child care

Families, child care providers and employees may see some relief in their taxes next year thanks to new programs being implemented.

The Child Care Tax Credit and the School Readiness Tax Credit aim to lessen the financial burden for families, providers and those helping improve early education across the state.

Elizabeth Everett is deputy director of First Five Nebraska, a public policy organization. The organization is launching a campaign to educate taxpayers on their options.

“For many folks, this is a huge relief, not only for those parents needing access to care, but also for those childcare employees and those providers that have a hard time financially making ends meet,” Everett said.

Under the Child Care Tax Credit, families and those who contribute to improving childcare can receive a tax benefit. With the School Readiness Tax Credit, childcare programs and employees can apply for tax reductions.

State Sen. Eliot Bostar hopes the options will help the childcare shortage in Nebraska.

“In Lincoln, we're seeing programs close consistently, and so that's why this is so important, that we ensure that everyone who is eligible is availing themselves of these resources so that we are providing this benefit to them,” Bostar said.

Child care contributors and child care employees can apply for the credits now. Families and child care owners can start applying Jan. 1.