HELP FOR INDIVIDUAL CHILD CARE PROFESSIONALS
You work hard for the children and families who depend on you. The refundable School Readiness Tax Credit rewards and encourages child care professionals like you to develop in their careers and grow a stronger early childhood workforce in Nebraska.
Who is this tax credit for?
The refundable School Readiness Tax Credit is available to qualifying staff members of licensed child care programs and self-employed child care professionals, such as licensed Family Child Care Home providers.
What’s a refundable tax credit?
Refundable tax credits are subtracted from the amount of tax you owe when you file your state income tax return. If the amount of the tax credit is larger than your tax liability, the difference is refunded to you.
How do I know if I’m eligible?
You may be eligible for the refundable School Readiness Tax Credit if you:
- Have been employed/self-employed for at least 6 months in a child care program participating in Step Up to Quality during the tax year
- Have completed 12 hours of in-service training approved by the Nebraska Department of Education (NDE)
- Are registered in the online Nebraska Early Childhood Professional Record System (NECPRS)
How much is the tax credit?
The size of the refundable tax credit corresponds to the applicant’s Professional Classification Level as determined by Nebraska Department of Education criteria. These criteria include professional development training, work experience and formal education. The higher your Professional Classification Level, the larger the refundable tax credit. Visit the Nebraska Department of Education/Step Up to Quality website for more information about determining your Professional Classification Level.
| Professional Classification Level | Tax Credit Amount |
| 5 | $3,500 |
| 4 | $3,200 |
| 3 | $2,900 |
| 2 | $2,600 |
| 1 | $2,300 |
Am I guaranteed a tax credit if I qualify?
The Nebraska Legislature has authorized a total of $7.5 million each year for the refundable and non-refundable School Readiness Tax Credits combined. When the total $7.5M limit is reached, the Nebraska Department of Revenue (NDOR) will issue no further refundable or non-refundable School Readiness Tax Credits until the following tax year. Please note that NDOR reviews tax credit applications in the order in which they are received.
When should I apply for the refundable tax credit?
You can submit your application for the refundable School Readiness Tax Credit as soon as you’ve met all eligibility requirements. It is not necessary to wait until the end of the tax year to begin the application process.
Where can I find more resources and information?
Nebraska Department of Education/Step Up to Quality
- Professional Classification Level point system
- Important dates and application instructions
- Video tutorials and other resources
Nebraska Early Childhood Professional Record System (NECPRS)
- Attestation application
Nebraska Department of Revenue
- 2024 School Readiness Staff Member Application Form
- Instructions for completing and mailing your application
How to Apply
- NECPRS ATTESTATION: By February 1, 2025, submit an Attestation Application to the Nebraska Department of Education (NDE) through your NECPRS profile. Allow up to four (4) weeks for NDE to process your Attestation Application.
- MAIL YOUR TAX CREDIT APPLICATION: By March 1, 2025, complete and mail a copy of the 2024 School Readiness Staff Member Application form to the Nebraska Department of Revenue (NDOR). You must include a copy of the Attestation Approval you receive from NDE.
- CLAIM THE TAX CREDIT: Include the tax credit certification you receive from NDOR with your state income tax return for the 2024 tax year.
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