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: 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, 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 Department of Revenue 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.
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