Employer’s Tax Credit For Expenses Incurred For Temporary Assistance For Needy Families (TANF) Recipients
Operative for taxable years beginning on or after January 1, 2017.
For taxable years beginning on or after January 1, 2017, employers are eligible for a nonrefundable tax credit equal to 20% of certain expenditures incurred for the benefit of any eligible employee.
An eligible employee is an individual who is a parent, caretaker relative, or a member of a family unit that has received benefits under the state or federally funded TANF program for any nine months of the 18-month period immediately before their hiring date. The eligible employee’s hiring date must be on or after the first day of the tax year for which the credit is claimed.
Eligible employees will have a Notice of Action from DHHS that verifies the employee is a part of the TANF program. If the employee does not have the notice of action available, the employee can submit a signed Nebraska Department of Health and Human Service’s Release of Information Form (ASD-46) to DHHS to verify their eligibility.
For more information on Nebraska’s TANF program, visit the DHHS webpage.
Eligible expenditures by the employer include the following when incurred for the benefit of eligible employees:
- 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 by the employer for two (not necessarily consecutive) tax years on an individual, corporate, fiduciary return, as well as, a partnership or S corporation return that is electing to pay taxes. Any unused credit will not carry forward. The employer must complete and attach the Employer’s Credit for Expenses Incurred for TANF (ADC) Recipients, Form TANF to their tax return when claiming this credit.
FORM
Employer’s Credit for Expenses Incurred for TANF (ADC) Recipients, Form TANF
Release of Information, Form ADS-46
ANNUAL REPORTS
Contact Information
Kasey Ma
Revenue Tax Specialist, Policy Section
Nebraska Department of Revenue
301 Centennial Mall South
PO Box 94818
Lincoln, NE 68509-4818
402-471-5687
kasey.ma@nebraska.gov
