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Tax Credits

School Readiness Tax Credit

Staff Member Tax Credit

What is it?

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.

Who can apply?

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.

Classification Levels

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

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.

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

*Eligible programs are defined as those participating in Step Up to Quality (at a Step 1 rating or higher). Applicant must have worked in an eligible program for at least 6 months during the tax year.

**Related fields include Elementary Education, Early Childhood Special Education, Curriculum and Instruction, Social Work, Nursing, Psychology, Human Development & the Family, Family Consumer Science, Youth Development, Mental Health/Counseling, Child/Youth and Family Studies.

 

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

How to Apply

  1. 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.
  2. 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.
  3. 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.

Apply in NECPRS

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 flyer 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.

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