When the U.S. Senate is back in session next week, senators are expected to consider a bipartisan tax bill passed by the U.S. House of Representatives that would expand the federal Child Tax Credit (CTC) for three years as well as roll back some corporate tax increases stemming from the 2017 Tax Cuts and Jobs Act.
Roughly 80,000 children in Nebraska families with low incomes would benefit from expansion of the federal CTC, helping to reduce child poverty. After Congress expanded the federal CTC in 2021, child poverty in the U.S. dropped to an all-time low of 5.2%. When the pandemic-era expansion ended, child poverty rebounded to 12.4%.
In recent polling by the Holland Children’s Institute, 62% of Nebraska voters expressed support for expanding the federal CTC, and the same percentage backed implementation of a state-level CTC in Nebraska.
On Wednesday, a bill (LB 1324) to launch a state-level CTC to supplement the federal CTC will be discussed in a hearing before the Revenue Committee. The proposal would grant hardworking Nebraska families that fall within certain income levels a refundable tax credit of up to $1,000 per child.
The Nebraska Legislature resumes Tuesday for Day 30 of the 60-day session. Among the bills scheduled for debate is LB 1067, a proposal to repeal the inheritance tax.
This week also marks the next-to-last week of committee hearings on bills introduced this year. OpenSky will share its research and analysis of several bills related to tax and fiscal policy. A breakdown of the week ahead:
- Tuesday: A bill (LB 1352) set for a hearing in the Appropriations Committee focuses on how federal American Rescue Plan Act (ARPA) funds are being spent in Nebraska
- Wednesday: A bill (LB 1367) set for a hearing in the Revenue Committee would provide property tax relief to homeowners whose taxes are high relative to their income
- Thursday: The Appropriations Committee will hold a heading on LB 1279, which addresses state income taxes on unrealized capital gains
- Friday: A bill (LB 1041) to expand eligibility for the state’s Homestead Exemption will be discussed in the Revenue Committee
Next webinar to discuss revenue caps
Register today for an OpenSky webinar on Wednesday, March 6, discussing the implications of spending limits placed on local political subdivisions. Panelists will include a local elected official and a fiscal policy expert to speak on some of the implications of revenue caps in place in Texas. The webinar will run from noon to 1 p.m.