Note: The School Readiness Tax Credit program ended with the 2021 tax year. First Five Nebraska is exploring legislation to reinstate the tax credits to provide these important financial supports for child care providers.
Nebraska senators passed legislation (LB889) in 2016 giving tax credits to child care programs and their early childhood staff members beginning with tax year 2017. The intent of the School Readiness Tax Credit Act is to support investment in quality early care and education and to increase access to quality early care and education across the state.
A nonrefundable income tax credit is available to owners or operators of an eligible child care program serving children who participate in Nebraska’s child care subsidy program. The credit ranges from $250 to $750 and is only available for programs rated Step 3 or higher in Nebraska Step Up to Quality.
A refundable income tax credit is available to staff members who are employed with an eligible child care program for at least six months during the taxable year and are classified in the Nebraska Early Childhood Professional Record System (NECPRS). Staff members receive tax credits ranging from $500 to $1,500 based on their classification.
See these sites for more detailed information:
Nebraska Department of Education
Nebraska Department of Revenue
Application for Child Care and Education Provider
Application for Child Care Staff Member