Nebraska Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
100% State Tax Credit (LB 754) + Federal 45F = The Best Deal in America!
🌽 Nebraska Offers a 100% Tax Credit!
LB 754 (Child Care Tax Credit Act) became operative January 1, 2024. This is technically the most aggressive child care tax credit in the nation!
The 2026 Nebraska "Stack"
Nebraska employers combine the federal Section 45F credit with the state's 100%/75% Child Care Tax Credit (LB 754) for unmatched savings.
Claim a tax credit for 40% (Large Business) or 50% (Small Business) of qualified child care expenses, up to $600,000 annually.
Tier 1: 100% for Opportunity Zones / Subsidy-eligible
Tier 2: 75% for all other licensed programs
🏆 The LB 754 Credit Tiers
| Tier | Credit Rate | Qualifying Programs |
|---|---|---|
| Tier 1 | 100% | Programs in Opportunity Zones OR serving subsidy-eligible children |
| Tier 2 | 75% | All other licensed child care programs |
Cap: $100,000 per taxpayer per year | Refundability: Non-refundable (5-year carryforward)
⚠️ Required: Apply via eDASH Portal
You must apply via the Nebraska Department of Revenue "eDASH" portal to claim this credit. Don't just file—register first!
đź’ˇ Nebraska Strategy: The "Free Money" Stack
If a Nebraska business donates $100,000 to a center in an Opportunity Zone, they get a $100,000 state tax credit. If they also claim the Federal 45F (subject to double-dipping rules), they effectively make money on the deal (or wash the cost entirely). Consult a CPA to optimize!
Nebraska Success Stories
From Silicon Prairie tech to rural collaboratives—Nebraska employers are leading the way.
đź’» Case Study: Hudl (Lincoln)
Hudl (Sports Tech) partnered with Primrose Schools to open an on-site center at their HQ.
- Model: On-site center partnership with Primrose Schools
- Tax Strategy: Used Federal 45F credit to lower tuition for employees
- The Pitch: "Tech companies in the Silicon Prairie can follow Hudl's lead: Use the 45F credit to subsidize tuition at a high-quality partner center."
🤝 Case Study: Norfolk Area Childcare Collaborative (Rural Model)
Four competitors joined forces: Daycos, Flood Communications, Elkhorn Valley Bank, and Northeast Community College.
- Model: Pooled resources to fund the Norfolk Area Childcare Collaborative (NACC)
- The Lesson: "Don't go it alone. In Norfolk, four major employers solved the problem together."
- LB 754 Bonus: Joint contributions are now 75% to 100% reimbursable under the new credit!
📱 Case Study: QLI Backup Care (Omaha)
QLI (Rehabilitation services) partnered with Swishboom (a local babysitting app) to provide backup care for their 400+ employees.
- Model: Subscription to backup care app for shift-work coverage
- Why it works: Solves the unpredictable scheduling problem without building a center
- Tax Tip: "Not ready to build a center? QLI solved their shift-work coverage problem by subscribing to a backup care app. This subscription is a deductible expense."
Nebraska-Specific Example: The "Opportunity Zone" Scenario
A manufacturing company in Omaha contributes $100,000 to a child care center in an Opportunity Zone.
| Cost Component | Amount | Credit/Savings |
|---|---|---|
| Contribution to OZ Child Care Center | $100,000 | — |
| Nebraska LB 754 Credit (100% Tier 1) | — | -$100,000 |
| Federal 45F Credit (50%)* | — | -$50,000* |
| Net Cost to Employer | $0 or NEGATIVE! | 100%+ off!* |
🌽 The Nebraska Advantage
*Important: The exact interaction between the 100% state credit and federal 45F depends on "double-dipping" rules. Consult a CPA to optimize. In many scenarios, you can wash the cost entirely or even come out ahead after tax benefits!
Nebraska Compliance & Resources
🏆 eDASH Portal (Required!)
You MUST apply via the Nebraska DOR "eDASH" portal to claim the LB 754 credit. Don't just file—register first!
Nebraska Department of Revenue →📋 Licensing Requirements
Child care facilities must be licensed by the Nebraska Department of Health and Human Services.
NE Child Care Licensing →📄 Required Federal Form
File IRS Form 8882 to claim the federal Section 45F credit.
IRS Form 8882 →🗺️ Opportunity Zone Map
Find Nebraska Opportunity Zones to qualify for the 100% Tier 1 credit.
HUD Opportunity Zone Map →Nebraska Child Care Landscape
For Opportunity Zones / Subsidy-eligible programs
For all other licensed programs
Per taxpayer per year (5-year carryforward)
Why Nebraska Is Leading the Nation
Nebraska's LB 754 is technically the most aggressive employer child care tax credit in America. The 100% rate for Opportunity Zones and subsidy-serving programs, combined with federal 45F, creates an unprecedented opportunity for employers to support child care at minimal or zero net cost.
- Omaha – Finance, healthcare, tech (QLI model!)
- Lincoln – Tech, education, government (Hudl model!)
- Norfolk – Manufacturing, banking, education (Collaborative model!)
- Grand Island – Agribusiness, manufacturing, healthcare
- Kearney – Healthcare, education, retail
- Bellevue – Military (Offutt AFB), healthcare
Qualified Intermediary Platforms for 45F
Under the One Big Beautiful Bill Act (OBBBA) 2026 updates, employers can now claim Section 45F credits for expenses paid to qualified intermediary service providers. These platforms help connect employees with licensed child care and manage benefits administration.
Child Care Marketplace Platforms
Technology platforms that connect employees with vetted, licensed child care providers. Expenses for subscription fees, matching services, and provider network access qualify under 45F.
Benefits Administration Services
Third-party administrators that manage employer child care benefits, including enrollment, provider payments, and compliance reporting. Administrative fees are now 45F-eligible.
Resource & Referral Agencies
Community-based organizations that help employees find quality child care. Contracts with R&R agencies qualify for the 10% referral credit component.
Backup Care Apps (QLI Model)
Platforms like Swishboom that provide on-demand backup care. Subscriptions are deductible and help solve shift-work coverage problems.
Nebraska Child Care Tax Credit FAQ
LB 754 (passed 2023) created the Child Care Tax Credit Act, operative January 1, 2024. It provides a 100% tax credit for contributions to child care programs in Opportunity Zones OR programs serving subsidy-eligible children, and 75% for all other licensed programs. Cap: $100,000 per taxpayer per year.
No, the Nebraska credit is non-refundable, but it has a 5-year carryforward. This means if you can't use the full credit this year, you can apply it to future tax years.
You MUST apply via the Nebraska Department of Revenue "eDASH" portal. This is required before you can claim the credit on your state return. Don't just file—register first!
Yes! If you donate $100,000 to a center in an Opportunity Zone, you get a $100,000 state credit. Combined with Federal 45F (subject to double-dipping rules), you could effectively wash the cost entirely or even come out ahead. Consult a CPA to optimize!
In Norfolk, four competitors (Daycos, Flood Communications, Elkhorn Valley Bank, and Northeast Community College) pooled resources to fund the Norfolk Area Childcare Collaborative (NACC). Under LB 754, these joint contributions are now 75% to 100% reimbursable!
Follow the QLI model: They partnered with Swishboom (a local babysitting app) to provide backup care for their 400+ employees. Subscriptions to backup care platforms are deductible expenses and solve shift-work coverage problems without building infrastructure.
Calculate Your Potential Nebraska Credit
Use our free calculator to estimate your potential federal + state tax savings. See how LB 754's 100% credit + 45F can eliminate your net cost entirely!
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