Nebraska Child Care Tax Credit Funds Depleted Amid Access Concerns

In February 2025, the Child Tax Credit (CTC) remains a vital financial resource for families, offering $2,000 per child under 17, down from the temporary $3,600 per child in 2021. Families must meet specific eligibility criteria to qualify for the CTC, and understanding the claim process is essential for maximizing tax refunds. Meanwhile, Nebraska lawmakers approved a bill allowing individuals and businesses to receive a nonrefundable credit for contributions to child care programs, reflecting ongoing discussions about the affordability of child care in the state. This initiative highlights the critical need for accessible child care, especially as demand for the recently introduced $15 million child care tax credit surged, exhausting funds within weeks. The situation indicates a broader challenge in the child care sector, prompting calls for increased support and funding to help families. As tax season approaches, both CTC and the Earned Income Tax Credit (EITC) are crucial for many families, with the EITC providing potential credits up to $8,046 in 2025.