Nebraska could pull thousands of young children out of poverty by providing their families with a state child tax credit, a legislative panel was told Wednesday.
But members of the Revenue Committee gulped at the price tag. Legislative fiscal staff estimated that Legislative Bill 1324 would reduce state tax revenues by nearly $126 million in the fiscal year starting July 1, 2025, when the credit was fully implemented.
“I 100% agree with the need,” said State Sen. Kathleen Kauth of Omaha, a committee member. “But $126 million is a huge, huge hit to the general fund.”