School Readiness Tax Credit for Childcare and Education Provider (Nonrefundable Tax Credit)
New information regarding submitting the School Readiness Tax Credit Applications.
Nebraska Department of Revenue (DOR) will publicize on our website the date the applications will be available for submission. Sign up for a free subscription service at the DOR's website to receive email updates regarding the applications availability.
Applications for the School Readiness Tax Credit for Childcare and Education Provider will be submitted electronically through the Electronic Document & Application Submission Hub (eDASH).
Neb. Rev. Stat. §§ 77-3601 to 77-3607
The School Readiness Tax Credit Act, as amended by LB 754 (2023), provides two separate income tax credits beginning with tax year 2024 that require taxpayers to submit an application to DOR. A nonrefundable provider credit as listed below and a refundable staff member income tax credit.
Credit for an Eligible Program. A nonrefundable income tax credit is available to individuals, partnerships, limited liability companies (LLCs), S corporations, corporations, or fiduciaries who owned or operated an eligible childcare and education program that served children who participated in the childcare subsidy program established in Neb. Rev. Stat. § 68-1202. The tax credit to the provider is equal to the average monthly number of children, age 5 or under, who participated in the childcare subsidy program and who attended the provider’s program, multiplied by a dollar amount based on the quality scale rating of the eligible program. Steps One through Five qualify for the credit:
A) $400 for a Step One program;
B) $600 for a Step Two program;
C) $800 for a Step Three program;
D) $1,000 for a Step Four program; and
E) $1,200 for a Step Five program.
Applications will be submitted using DOR’s eDASH. Each year the DOR will publish the application submission date on the DOR’s website. The application must be properly filled out and supported to be considered a complete application. The application requires either the Explanation of Payments (EOP) received from the Nebraska Department of Health and Human Services (NDHHS) for each month or a report from NDHHS verifying the number of days of childcare that you received subsidy reimbursement for each month. Both the application and NDHHS verification documentation must be submitted to be considered a complete application for review and processing.
To claim or distribute this tax credit, a completed application must be submitted to the DOR with the required information. Partnerships, LLCs, S corporations, and fiduciaries who distribute the tax credit must complete page 2 of the application with the name, Social Security number (SSN) or Nebraska ID number, percentage share of income, and the amount of tax credit for each partner, shareholder, member, or beneficiary. Please allow four weeks to process and respond to your application. The tax credit may only be claimed after your application has been approved in writing by DOR.
DOR will process the staff member and provider applications in the order received. The tax credit may only be claimed after your application has been approved in writing by DOR. Please allow four weeks for DOR to process and respond to your application.
The total amount of tax credits available is shared by the staff member and provider programs and limited to $7.5 million per tax year.
For the 2025 tax year, the School Readiness Tax Credit for Childcare and Education Providers will apply using the eDASH portal. When the eDASH portal is open, you can apply by clicking the eDASH link below. The eDASH system is fast, easy, and secure.
DOR will publicize when the eDASH is open.
Subscribe to receive notification when the application is available.
