Tax credits
Child care and early childhood education providers who are enrolled
in Step Up to Quality may be eligible for individual tax credits, along with their staff.
School Readiness
Tax Credit
Providers, and their staff, who participate in Step Up to Quality may be eligible for tax credits.
Staff Member Tax Credit
The School Readiness tax credit for staff members is a refundable tax credit for eligible staff and self-employed individuals working in programs that participate in Step Up to Quality.
Anyone who meets or exceeds the base requirements in the areas of training and work experience can (and should!) apply for this tax credit. Base requirements include 12 clock hours of NDE verified/approved training and at least 6-months of experience working in a Step Up to Quality program during the tax year.
- Note: Certified teaching and administrative staff employed by before-and afterschool or pre-kindergarten programs established by school boards or educational service units are not eligible.
Tax Credit Classification Levels
This chart provides an overview of how many points are needed to achieve each level of the tax credit. These amounts may vary slightly from year to year depending on inflation. Classification levels are determined by the number of points earned in the categories of training, work experience, and education. Each category allows for only one selection and the education category is optional.
| Points | Tax Credit | |
|---|---|---|
| Level 1 | Base training & work experience requirements met | $2,373 |
| Level 2 | 2-5 points | $2,683 |
| Level 3 | 6-9 points | $2,992 |
| Level 4 | 10-12 points | $3,302 |
| Level 5 | 13-15 points | $3,611 |
Categories for Earning Points
Use the tables below to see if you qualify and estimate the amount of your potential refund.
| Training hours completed during 2025 tax year | Points |
|---|---|
| 12 clock hours of NDE verified/approved training | Base requirement |
| 15 clock hours of NDE verified/approved training | 3 Points |
| 18+ clock hours of NDE verified/approved training | 5 Points |
| Work experience | Points |
|---|---|
| At least 6 months of employment in an eligible program* during the tax year | Base requirement |
| At least 1 year experience working in an early care and education environment (including 6-month base requirement) | 2 Points |
| At least 2 years of experience working in an early care and education environment (including 6-month base requirement) | 3 Points |
| At least 3 years of experience working in an early care and education environment (including 6-month base requirement) | 4 Points |
| At least 5 years of experience working in an early care and education environment (including 6-month base requirement) | 5 Points |
| Education (optional) | Points |
|---|---|
| CDA credential that is active at any point during the 2025 tax year or one-year certificate/diploma in Early Childhood Education or Child Development | 3 Points |
| Associate degree in Early Childhood Education/Child Development or a Related Field * | 4 Points |
| Bachelor’s degree or above in Early Childhood Education/Child Development or a Related Field * | 5 Points |
Note: Degrees in fields not appearing on this list will not count toward the tax credit.
Example 1
| Category | Selection | Points |
|---|---|---|
| Training | 12 clock hours of NDE verified/approved training completed during tax year | Base |
| Work experience | 6 months of employment in an eligible program during the tax year | Base |
| Education (optional) | — | — |
| Point total | Meets all base requirements | |
| Level | Level 1 | |
| Tax credit | $2,373 |
Example 2
| Category | Selection | Points |
|---|---|---|
| Training | 15 clock hours of NDE verified/approved training completed during tax year | 3 points |
| Work experience | 3 years of experience working in an early care and education environment (including 6-month base requirement) | 4 points |
| Education (optional) | CDA Credential | 3 points |
| Point total | 10 points | |
| Level | Level 4 | |
| Tax credit | $3,302 |
Important Dates to Remember
2025
- January: The 2025 tax year begins. This is the perfect time to review your NECPRS account to ensure your correct name and address appear in your account, and to start updating your 2025 training hours, work experience, relevant education, and credential information in your NECPRS account for verification. Please allow 30-60 days for verification. Training, credentials, and education files uploaded after December 1 cannot be guaranteed to be verified for the attestation application.
- July 1: Attestation application opens in NECPRS
2026
- February 1: Attestation application closes in NECPRS
How to Apply
Tap each step below for more information.
Step 1: Complete attestation application
A tax credit attestation application must be completed in NECPRS between July 1, 2025 — February 1, 2026. Please allow up to 4 weeks for your attestation to be verified. (Please ensure your name and address are correct before submitting the application.)
Step 2: Submit attestation form
Once approved, the eligible staff member must save/download the attestation form from their NECPRS account and submit it to the Nebraska Department of Revenue to apply for the tax credit.
The Nebraska Department of Revenue (DOR) will announce on its website the date when applications for the School Readiness Tax Credit will be open for submission. You can sign up for a free subscription service on the DOR’s website to receive email updates about the availability of the application.
Step 3: Claim your tax credit
Claim your tax credit by attaching the tax credit certification received from the Nebraska Department of Revenue to your individual income tax return.
FAQs
Who is eligible to apply for this tax credit?
- Individuals employed by an eligible program* for at least 6 months during the tax year, or
- Self-employed individuals working with an eligible program* for at least 6 months in the tax year.
- Provide early childhood education or childcare services for the program.
- Must be assigned a classification level through the Nebraska Early Childhood Professional Record System (NECPRS).
*Eligible programs are defined as those participating in Step Up to Quality during the tax year (at a Step 1 rating or higher).
Note: Certified teaching and administrative staff working in before-and-after-school or pre-kindergarten programs established by school boards or educational service units are not eligible.
How do I apply for the tax credit?
- Upload your training and related degrees (if you have any) in NECPRS for verification.
- Request the “School Readiness Tax Credit Act – Attestation of Staff Member Classification Level” form from the Nebraska Department of Education by applying in NECPRS by clicking on “Tax Credits” on the menu bar and then “New Application”.
- Submit your approved attestation form to the Nebraska Department of Revenue to apply for the tax credit. The Nebraska Department of Revenue (DOR) will announce on its website the date when applications for the School Readiness Tax Credit will be open for submission. You can sign up for a free subscription service on the DOR’s website to receive email updates about the availability of the application.
What degrees are counted among the related fields?
Note: Degrees in fields not appearing on this list will not count toward the tax credit.
- Behavioral Science
- Child/Youth and Family Studies
- Community Health
- Curriculum and Instruction
- Early Childhood Special Education
- Elementary Education
- Elementary Special Education
- Family Consumer Science
- Health
- Health Science
- Human Development & the Family
- Human Services
- Mental Health/Counseling
- Nursing
- Physical Education
- Psychology
- Social work
- Speech & Language Pathology
- Youth Development
What are the duties of each agency involved in the tax credit?
Nebraska Department of Education (NDE) responsibilities:
- Verifies training (allow 30 days)
- Verifies degrees and credentials (allow 60 days)
- Processes via NECPRS your attestation of staff member classification level form (allow 30 days)
- Processes the enrollment application for Step Up to Quality (allow 30-45 days)
Note that NDE is no longer your point of contact if the request is outside of their scope of work.
Nebraska Department of Revenue (NDOR) responsibilities:
- Processes your tax credit application and delivers your tax credit certification.
How long does the application process take?
The Nebraska Department of Education (NDE)
Please allow:
- 30 days for training verification
- 30-60 days for education and credential verification
- 30-45 days to process Step Up to Quality enrollment application
- 4 weeks to approve the attestation application in NECPRS
The Nebraska Department of Revenue (NDOR)
Please allow 4-6 weeks for processing the tax credit application.
How do I receive updates on my attestation application from NDE?
- To ensure you don’t miss any of our communications, make sure your email address matches the one we have in NECPRS. Remember to update your NECPRS account.
- Check your emails and use the “Notifications” feature in NECPRS, which is located in the top right corner of your screen after logging into NECPRS. Ensure you have opted to receive email notifications in your “Notification Preferences”. (Emails may be received in a junk or spam folder.)
- You can check on the status of your attestation in NECPRS by logging in to your account and clicking “Tax Credits”.
How can I claim my tax credit?
Claim your tax credit by attaching the tax credit certification received from the Nebraska Department of Revenue to your individual income tax return. For more information, contact the Nebraska Department of Revenue at 402-471-5729.
What happens if the program reaches the $7.5 million limit?
The total amount of tax credits available for both the Individual Tax Credit and the Program Tax Credit is limited to $7.5 million per tax year. Applications are processed in order of submission until the tax credit cap of $7.5 million is met. Therefore, it’s important to apply early.
Child Care Program Tax Credit
There is also a nonrefundable tax credit available to eligible child care programs that participate in Step Up to Quality and serve children who participate in the child care subsidy program.
