School Readiness Tax Credit Authorization Table

Calendar Year 2025: $7,500,000 Maximum

The tax credit limitation of $7,500,000 for tax year 2025 was reached as of February 2, 2026. Submissions received on February 2, 2026, have been prorated. When prorating the DOR uses a ratio of the amount available on the day the annual limit is reached compared to the amount requested for the approved applications. This ratio was applied to determine the School Readiness tax credit amount on the approved applications. As the annual limit was reached on the first day, that meant the first day needed to be prorated.  This was the first time this program reached the annual limit on the first day.  As the annual limit was reached on the first day, the amount available was $7.5 million divided by $10,691,201, the amount requested by the approved applications for that day. This ratio of .70151 was multiplied by the requested amount to determine the tax credit on the approved applications.

Calendar Year 2024: $7,500,000 Maximum

*The amount requested includes amounts still under review. The amount requested equals the total amount of credits requested based on both the School Readiness Tax Credit Act – Staff Member Application, and the School Readiness Tax Credit Act – Application for Childcare and Education Provider forms filed with DOR. Allow at least four (4) weeks for DOR to process and approve Forms to reserve the tax credits. Please note that an eligible staff member does not include certificated teaching and administrative staff employed by programs established pursuant to section 79-1104.

The annual limit of $7,500,000 was reached.