Questions & Answers

What is the TANF Credit?

Beginning with tax year 2017, there is a nonrefundable income tax credit equal to 20% of an employer's expenditures for eligible employees. An eligible employee is an individual who is a parent or caretaker relative who is a member of a unit that received benefits under the state or federally funded TANF program for any nine months of the eighteen-month period immediately prior to the employee's hiring date, and whose hiring date is on or after the first day of the tax year for which the credit is claimed. The tax credit may be taken against individual, corporate, or fiduciary income taxes.

Eligible employer expenditures for employees include:

  • Tuition at Nebraska public institutions for postsecondary education;
  • The costs of a high school equivalency program; and
  • The cost for transportation of eligible employees to and from work.
The income tax credit may be claimed for two (not necessarily consecutive) tax years.

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