The attestation application window for the refundable 2026 School Readiness Tax Credit is now open.
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.
For more detailed information about Professional Classification Levels, attestation application instructions and more, visit the Step Up to Quality website.
Frequently Asked Questions
- Who is this tax credit for?
- What’s a refundable tax credit?
- How do I know if I’m eligible?
- Who isn't eligible for this tax credit?
- How much is the tax credit?
- Why is there a first-come first-served rule with the tax credit?
- How much money is reserved for the refundable vs. nonrefundable School Readiness Tax Credit?
- What happens when the $7.5 million limit for the tax credit is reached?
- Where can I find more resources and information?
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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.
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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.
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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) -
Who isn't eligible for this tax credit?
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.
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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 Professional Classification Levels.
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Why is there a first-come first-served rule with the tax credit?
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.
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How much money is reserved for the refundable vs. nonrefundable School Readiness Tax Credit?
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.
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What happens when the $7.5 million limit for the tax credit is reached?
If your application is received on the day that the annual $7.5 million limit for the refundable and nonrefundable School Readiness Tax Credit is reached, any tax credit awarded to you will be prorated by NDOR based on the total amount of approved tax credit requests received that day.
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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 resourcesNebraska Early Childhood Professional Record System (NECPRS)
► Attestation applicationNebraska Department of Revenue
► 2024 School Readiness Staff Member Application Form
► Instructions for completing your application
How to Apply
Step 1: Submit your attestation application
- Make sure your work experience, credentials and training hours are up to date in the Nebraska Early Childhood Professional Record System (NECPRS) Learn how this information determines the size of your tax credit on the Step Up to Quality Website.
- Submit your professional attestation application to the Nebraska Department of Education (NDE) through NECPRS. Allow 30 to 60 days for NDE to review your application and issue you an attestation verification number. Although the attestation application window remains open through January 15, 2027, it is strongly recommended that you upload your training, credentials and other information to NECPERS before December 1, 2026.
Step 2: Submit your tax credit application
- All applications for the refundable School Readiness Tax Credit must be submitted electronically through the Nebraska Department of Revenue's (NDOR) online eDASH portal when it opens in early 2027.
- After your attestation is approved, save the attestation form and submit it with the refundable School Readiness Tax Credit application when the eDASH portal opens.
Step 3: Claim the tax credit
- When your application has been processed, you will receive a notification from NDOR directing you to log back into the eDASH system. If your tax credit application is approved by NDOR, you will be able to retrieve your certification number and the amount of the approved credit from Form SR-3605 in eDASH. Enter the certification number and credit amount in the appropriate space on your state income tax return.
- Your tax credit reduces the amount of taxes you owe. If your credit is larger than your tax bill, the difference will be refunded to you.
IMPORTANT: Applications received on the day that the annual $7.5 million limit for the refundable and nonrefundable School Readiness Tax Credit is reached will be prorated (if approved) by NDOR based the total amount of credit requests received that day.
