For years, Nebraska advocates knew tax credits could be a powerful tool for strengthening the state’s child care system—but only if families, providers, and employers actually used them. When a 2016 school readiness credit barely reached its potential before it ended, First Five Nebraska saw it as a lesson, not a failure. They came back with a stronger vision: a bigger, better-designed package of credits paired with an equally serious communications and outreach strategy.
In 2023, that strategy led to a major step forward. Working closely with a key legislative champion and a broad coalition of partners, First Five Nebraska helped secure a new package of four child care and school readiness credits as part of LB 754. The package included refundable credits for families paying for child care, refundable and nonrefundable credits that reward child care professionals and programs that accept subsidies, and a nonrefundable credit to encourage businesses and other taxpayers to invest directly in the child care ecosystem. Together, the credits were structured to reach more providers, better support the workforce, and open access to tax relief for families and contributors across the child care system.
Advocates also knew that in a conservative fiscal environment, the proposal had to be both ambitious and politically viable. They worked with a trusted “bridge” legislator who had relationships across the aisle and could move the bill forward. By negotiating the credits into a larger tax package that lawmakers and the governor already wanted to move, they secured overwhelming support for a bill that meaningfully invests in young children and the people who care for them.
Passing the bill, however, was only the first step. Learning from the underused 2016 credits, First Five Nebraska prioritized implementation from the start. With flexible funding and responsive support from the Alliance for Early Success and its national partners, the team developed clear, audience-specific materials and a proactive outreach plan. They created dedicated campaign websites with plain-language explanations, eligibility details, and step-by-step guidance, aired video and radio PSAs in English and Spanish through the Nebraska Broadcasters Association, and supplemented those efforts with paid social media and streaming ads to reach parents and providers where they already were.
Just as important, advocates activated trusted messengers. First Five Nebraska staff spent the year meeting with Nebraskans—in person and virtually—to explain the credits at conferences, community meetings, chamber events, and provider gatherings, ultimately speaking at approximately 100 events. They equipped business leaders, child care providers, United Way partners, and others with information they could share directly with families and worked closely with tax professionals and state agency staff to answer technical questions in real time.
The result was a clear signal that the policy was working as intended. In the first year, three of the four credits reached their caps, and total claims reached $36 million on a $25 million cap, meaning demand significantly exceeded the dollars available. That strong uptake across the family, provider, and contributor credits showed that the redesigned package was reaching the people it was intended to benefit. The state is already refining the policy—expanding eligibility for the contribution credit and streamlining subsidy verification for providers—based on what early implementation revealed.
Nebraska’s experience shows how the Alliance for Early Success’s flexible funding and expert support can help state advocates turn a promising idea into measurable progress for young children and the adults who care for them. It also offers a simple playbook for other states: treat earlier attempts as prototypes, choose champions who can navigate the political landscape, design credits that reach families, providers, and contributors—and pair any new policy with a robust, sustained implementation and outreach strategy that ensures people can actually use it.