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.

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.

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)

Teaching and administrative staff employed in before/afterschool and pre-K programs established by school boards or ESUS do not qualify for the refundable School Readiness 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 Professional Classification Levels.

There is simply not enough money to guarantee that every applicant will receive the tax credit. Last year, nearly $11 million was requested, far exceeding the $7.5 million available for the School Readiness Tax Credit. This coming tax season,the Nebraska Department of Revenue's online eDASH application system will help guarantee that applications are processed exactly in the order in which they are received.

Yes - especially if you plan to apply as early as possible after the eDASH portal opens in January 2026. The sooner you submit your application, the more likely you are to receive the credit before the money runs out again - but unfortunately there are no guarantees. It is frustrating to apply and not benefit from the credit, but the high demand sends lawmakers a clear message that more financial supports are needed to strengthen Nebraska's early childhood professional workforce.

Both the refundable credit (for child care staff and self-employed providers) and the nonrefundable credit (for child care program owners) draw from the same $7.5 million reserved for the School Readiness Tax Credit.

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 your application