Nebraska
EARNED INCOME TAX CREDIT (EITC)
Rate (Fully-Refundable): 10% of the federal credit1
Eligibility Requirements: All Nebraska taxpayers who qualify for the federal credit are automatically eligible.
Latest Legislative Action:
- Sen. Patty Pansing Brooks introduced legislation that would double the state’s EITC to 20 percent of the federal credit by 2021
- In March 2015, lawmakers considered a bill that would have increased the state’s EITC from 10 to 15 percent of the federal credit over two years, but it failed to pass and was indefinitely postponed during the 2016 legislative session.
Notes: In 2013, Governor Heineman proposed eliminating the state’s income tax, which would have automatically eliminated the state’s EITC, but withdrew his proposal after substantial opposition from a wide range of stakeholders.
CHILD TAX CREDIT (CTC)
Nebraska does not currently offer a state-level CTC.
Latest Legislative Action: In 2023, Sen. Danielle Conrad (D) introduced Legislative Bill 294, which would provide eligible families with a refundable state CTC of up to $1,000 per child. The bill is in committee.
CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)
Rate: Percentage of the federal credit as well as refundability vary with a filer’s earned income according to the table below.
| INCOME | PERCENTAGE OF FEDERAL CREDIT |
|---|---|
| Credit Fully Refundable | |
| $22,000-$22,999 | 90 percent |
| $23,000-$23,999 | 80 percent |
| $24,000-$24,999 | 70 percent |
| $25,000-$25,999 | 60 percent |
| $26,000-$26,999 | 50 percent |
| $27,000-$27,999 | 40 percent |
| $28,000-$28,999 | 30 percent |
| Credit Non-Refundable | |
| ≥$29,000 | 25 percent |
Source: