Supporting LB318 and the Childcare Tax Credit Act

(File photo)

Workforce development is a top priority across the state with the Lincoln Chamber of Commerce and other business associations, economic developers and additional partners across Nebraska in supporting a bill that would expand tax credits for childcare in the state.

LB318, the Childcare Tax Credit Act, is proposed by Lincoln Senator Eliot Bostar and went before the Legislature’s Revenue Committee on Wednesday, February 8. As proposed, LB318 would establish a refundable tax credit in the range of $1,000 to $5,000 per child to be used for childcare expenses based on household income and reauthorize tax credits under the School Readiness Tax Credit Act.

Dianne Temme Stinton, CEO of TMCO, offered testimony on behalf of the Lincoln Chamber of Commerce, Greater Omaha Chamber, Nebraska Chamber of Commerce & Industry, Columbus Chamber of Commerce and Nebraska Economic Developer’s Association supporting LB318. During her testimony, Temme Stinton noted that affordable housing and childcare consistently rank in surveys as the top concerns of employees and prospective employees.

“This is a statewide issue which is key to building our workforce for those that are considering a move to Nebraska,” Temme Stinton testified. “Nebraska’s pride is in our labor and work ethic, but the current insufficient childcare structure threatens this advantage and causes people to leave Nebraska’s workforce.”

Provisions in the bill would also incentivize tax credits to businesses that contribute to early childhood education programs. 

“Childcare is not an option—it’s a necessity,” said Elizabeth Elliott, deputy director of First Five Nebraska. “Parents, employers and our state as a whole depend on quality childcare.”

The Lincoln Chamber has backed similar legislation in recent years that remains crucial to ongoing workforce development efforts. 

“Early childhood education and workforce development are key to Lincoln’s success as a community,” according to Alec Gorynski, president and CEO of the Lincoln Community Foundation.

In total, 16 people testified in support of LB318 with one neutral testifier and no opposition testimony. Testimony centered on the effects that a lack of childcare can have on local economies and their communities, with testifiers noting the importance of working families to have more affordable options when it comes to childcare.