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 can 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.
Use the tables below to see if you qualify and estimate the amount of your potential refund.
Note: Certified teachers working in public school programs are not eligible.
| Points | Tax Credit | |
|---|---|---|
| Level 1 | Base training & work experience requirements met | $2,300 |
| Level 2 | 2-5 points | $2,600 |
| Level 3 | 6-9 points | $2,900 |
| Level 4 | 10-12 points | $3,200 |
| Level 5 | 13-15 points | $3,500 |
Categories for Earning Points
| Training hours completed during 2024 tax year | Points |
|---|---|
| 12 clock hours of NDE verified/approved training | Base requirement |
| 18 clock hours of NDE verified/approved training | 2 Points |
| 24 clock hours of NDE verified/approved training | 3 Points |
| 30 clock hours of NDE verified/approved training | 4 Points |
| 36+ 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 2024 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 |
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 | — | $2,300 |
Example 2
| Category | Selection | Points |
|---|---|---|
| Training | 24 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 | — | $3,200 |
Important Dates to Remember
2024
- January: The 2024 tax year begins. This is the perfect time to start updating your 2024 training hours, work experience, relevant education, and credential information in your NECPRS account for verification.
- July 1: Attestation application opens in NECPRS
2025
- February 1: Attestation application closes in NECPRS
- March 1: Attestation and staff member application due to Nebraska Department of Revenue
How to Apply
- A tax credit attestation application must be completed in NECPRS between July 1, 2024 — February 1, 2025. Please allow up to 4 weeks for your attestation to be verified.
- Once received, the eligible staff member must submit their NECPRS attestation form along with their 2024 Staff Member Application to the Department of Revenue to apply for the tax credit by March 1, 2025.
- Claim your tax credit by attaching the tax credit certification from the Nebraska Department of Revenue to your individual income tax return.
Watch a video tutorial on how to apply for your tax credit attestation form in NECPRS in English or Spanish.
Spread the Word About the School Readiness Tax Credit!
We’ve created an easy-to-share flyer to help your staff learn how they can benefit from the School Readiness Tax Credit. Simply print and post it in your program to ensure everyone is informed. Download the flier in English or Spanish.
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. Find more information regarding the program tax credit and how to apply at schoolreadinesstaxcredit.org.