Senators approve tax credits for early childhood workforce

Early childhood care and education program providers and their staff will be eligible for a tax credit under a bill passed by lawmakers April 12.

Introduced by Omaha Sen. Heath Mello, LB889 creates two tiered tax credits—one for providers of eligible early childhood care and education programs and another for staff members.

A child care or early childhood education program will have to be assigned a quality rating under the Step Up to Quality Child Care Act to qualify for the credit. The amount of the credit will be determined by the program’s quality rating and the average monthly number of children who attend the program.

The bill also directs the state Department of Education to develop a classification system for employees of applicable early childhood care and education programs. An employee’s rating will be based on his or her level of education, training and work history. The rating will determine the amount of credit the employee receives.

The total amount of credits will be capped at $5 million per year and the credits will be available for five years beginning Jan. 1, 2017.

The bill passed 42-5.