Active 2026 Pilot
Nebraska LB 1178 Tri-Share Pilot & 50% Employer Credit
TheLB 1178 Nebraska Tri-Share Pilotlaunched in early 2026 in Douglas County (Omaha) and Lancaster County (Lincoln). Employers in these counties can apply for the state's ~33% match immediately. Employers statewide can claim the50% Nebraska employer tax creditright now.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
Nebraska Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The Nebraska Savings Stack
Stack available Nebraska programs with the Federal 45F Tax Credit for maximum employer savings.
| Benefit Layer | Small Business (<$32M) | Large Business |
|---|---|---|
| State Program Benefit | Varies by program | Varies by program |
| Federal 45F Credit (2026) | 50% Tax Credit | 40% Tax Credit |
| Net Employer Cost | Significantly Reduced | Significantly Reduced |
💰 Real-World Employer Savings
| Cost Component | Without Program | With State + 45F Stack |
|---|---|---|
| Annual child care cost (per employee) | $12,000 | $12,000 |
| State Program Benefit | $0 | Varies |
| Employee Share | $0 | Reduced |
| Employer Share | $12,000 | Reduced |
| Federal 45F Credit (50% of employer share) | $0 | Significant savings |
| Net Employer Cost | $12,000 | Significantly Lower |
📋 Available Programs & Incentives
Nebraska Child Care Tax Credit (LB 1402)
State Tax Credit
Refundable credit for employers and families
Eligibility: All Nebraska employers and families with qualifying child care expenses
Nebraska Child Care Subsidy
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 85% SMI
Federal Section 45F Credit
Federal Tax Credit
Up to 50% of employer costs (max $600K/yr)
Eligibility: All U.S. employers with qualifying child care expenses
Nebraska Step Up to Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Nebraska child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any Nebraska employer, no state program required
📍 Geographic Coverage
Major Cities Served
County Coverage
All 93 Nebraska counties are eligible for the LB 1178 Tri-Share pilot and 50% employer tax credit. Contact DHHS for enrollment.
❓ Frequently Asked Questions
LB 1402 created a refundable child care tax credit for both employers and families in Nebraska. The credit is designed to reduce child care costs for working families and incentivize employer investment in child care benefits.
Yes — Nebraska employers can stack the LB 1402 state credit with the Federal Section 45F Credit for maximum savings on employer child care contributions.
Omaha, Lincoln, Bellevue, and Grand Island have the highest employer participation rates. LB 1402 is available statewide to all Nebraska employers.
Nebraska does not have a formal Tri-Share program. However, LB 1402 creates a strong employer incentive. We recommend a Duo-Share model — contact us for a free consultation.
Nebraska's child care subsidy serves families at or below 85% of the State Median Income (SMI). Contact Nebraska DHHS for current income thresholds.
Step Up to Quality is Nebraska's quality rating and improvement system for child care providers. Higher-rated providers receive additional funding and are preferred partners for employer child care programs.
Contact the Nebraska Department of Revenue at revenue.nebraska.gov for guidance on claiming LB 1402 credits.
📚 References & Sources
Last Updated: March 1, 2026