Nearly 900,000 Nebraskans would benefit from proposed state child tax credit

LINCOLN, Neb. (KLKN) — A new bill could help close to 900,000 Nebraskans. 

Introduced by Sen. Danielle Conrad, the Nebraska Child Tax Credit bill would benefit about 81% of the state’s children. 

Also known as Legislative Bill 294, it would provide families under a certain income level a refundable tax credit of up to $1,000 per child. 

“This can benefit rural Nebraskans, urban Nebraskans, and really most families with children that need that extra help to deal with inflation, to deal with educational and child care costs,” Conrad said. 

If the bill is approved, Nebraska would join states like New York, Massachusetts, Maryland, Colorado, New Mexico, California, Maine, Idaho and Oklahoma in having a child tax credit. 

I though the time was right to introduce this in Nebraska,” Conrad said. “It’s a proven strategy that has strong support across the state and across the political spectrum.”

The proposal would allow a $1,000 credit per child to be claimed by families with incomes up to $75,000 for a single filer, up to $92,500 for heads of household and $122,500 for married couples filing jointly. 

Families making more than that could receive lower credits based on income. 

“There is no limitation on the number of children that are covered, and it kind of phases in and out with different income levels,” Conrad said. 

Conrad said the credit would put more money in the pockets of hardworking Nebraskans. She said that unlike other tax bills, this one considers middle-class families. 

This credit would be in addition to the Federal Child Tax Credit. In the 2022 tax year, it gives $2,000 for each qualifying child under the age of 17. 

The bill still has to go through a hearing, which could be early next month, before it could be debated on the floor.

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