Nebraska Homeschool Funding and Tax Credits: What's Actually Available in 2025

A lot of Nebraska parents are searching for state homeschool funding right now — and finding outdated blog posts that promise money that no longer exists. Before you make any financial plans around homeschooling, you need to know exactly where things stand. The news is disappointing, but knowing the truth saves you from building your budget around a program that was voted out of existence.

LB 1402 Passed, Then Voters Repealed It

In early 2024, the Nebraska Legislature passed LB 1402, which created Educational Freedom Accounts — state-funded scholarships that would have provided money to families choosing private or home-based education. The bill was historic. It represented the first significant crack in Nebraska's longstanding resistance to state-funded school choice.

It lasted less than a year.

In the November 2024 general election, Nebraska voters passed Referendum Measure 435, repealing LB 1402 by a margin of 57% to 43%. The Educational Freedom Accounts are gone. The funding and scholarship provisions were wiped out at the ballot box.

Any blog post, video, or forum comment telling you that Nebraska offers a homeschool ESA, a per-child stipend, or a tax credit for homeschooling expenses is describing a law that no longer exists. There is no statewide ESA program, no voucher system, and no state tax credit for homeschool expenses in the 2025-2026 school year.

Is There Any Nebraska Homeschool Tax Credit?

No. Nebraska does not currently offer a state income tax credit for homeschooling costs. There is no deduction for curriculum purchases, educational materials, or instructional expenses at the state level.

At the federal level, homeschool expenses are generally not deductible either. The federal Coverdell Education Savings Account (ESA) can technically be used for K-12 homeschool expenses, but the annual contribution limit is $2,000 and the tax advantage is modest — contributions are not deductible, only the growth is tax-free when withdrawn for qualified education expenses.

What About the Federal Scholarship Tax Credit Program?

Governor Jim Pillen signed an executive order opting Nebraska into a Federal Scholarship Tax Credit program that is scheduled to take effect in 2027. This program would allow individuals and corporations to direct funds to Scholarship Granting Organizations (SGOs), which could then distribute money to families for eligible K-12 education expenses, explicitly including homeschooling.

However, as of 2025, this program has not operationalized. The U.S. Treasury has not yet established the full regulatory framework. Until it does, Nebraska families cannot access it.

The 2027 timeline is also contingent on implementation details that haven't been finalized. It's worth tracking, but it is not a resource available to you today.

Where the Real Financial Support Exists

Since the state offers nothing currently, Nebraska homeschoolers rely on four practical sources:

Free and Open-Source Curriculum Khan Academy covers math and science comprehensively from elementary through AP level at no cost. The Nebraska Open Educational Resources hub provides additional materials aligned to state subject areas. Many families build a full curriculum around free digital resources, supplemented by library books.

Local Co-ops Homeschool co-ops distribute teaching costs among parents. Instead of one family paying for a high school chemistry class, twenty families share the cost of materials and rotate instruction. Groups like the Kearney Area Home Educators, the Valley Home School Association in Scottsbluff, and co-ops across Omaha and Lincoln operate on this model. Depending on the co-op, costs can drop to nearly nothing for participating families.

Used Curriculum Markets Nebraska's homeschool community is large and well-networked. The Nebraska Christian Home Educators Association (NCHEA) hosts an annual curriculum fair where families buy and sell used materials at steep discounts. Facebook groups for Nebraska homeschoolers run informal buy-sell-trade threads throughout the year.

Dual Enrollment Through Community Colleges High school-age students in Nebraska's exempt schools can enroll in community college courses at significantly discounted tuition rates — often up to 65% off standard rates through programs like SENCAP at Southeast Community College. These credits count simultaneously toward the student's 1,080-hour homeschool requirement and toward a future college degree. This is the most financially leveraged path for older students.

Setting Realistic Expectations

The all-in annual cost of homeschooling in Nebraska varies enormously. A family using free digital curriculum, library resources, and co-op instruction might spend a few hundred dollars per year. A family purchasing a full boxed curriculum with individual subjects for multiple children could spend several thousand.

If you're withdrawing from a Nebraska public school and planning to homeschool, budget conservatively. Do not assume any state funding is coming — because as of today, none is. Build your financial plan around what's actually available: free curriculum resources, co-op sharing, and dual enrollment for high schoolers.

The legal process of withdrawing from school and setting up your exempt school is a separate matter from curriculum and finances. If you're still in the withdrawal phase and need the Rule 13 filing steps, withdrawal letter template, and hour-tracking tools for Nebraska, the Nebraska Legal Withdrawal Blueprint covers that process from start to finish.

See more United States homeschool guides →