The move means a previously announced end date to the scheme of 31 March 2021 will now continue until at least June 2023.
It will allow for a full evaluation of the impact of the day nursery relief on providers, parents and carers.
According to figures, in 2020/21 the relief has been worth an average of more than £12,000 to each eligible nursery.
Commenting, Stewart Stevenson MSP said:
“This is a very welcome news in what has been a very challenging year for many businesses including those in the childcare sector.
“Nurseries help to play a vital role in helping our economy, not only helping support children’s development but also allowing parents to access employment, education or training.
“We have seen just how important this has been during the pandemic as parents and carers have juggled the many everyday challenges of childcare and working all under one roof.”
“Nurseries help to play a vital role in helping our economy, not only helping support children’s development but also allowing parents to access employment, education or training.
“We have seen just how important this has been during the pandemic as parents and carers have juggled the many everyday challenges of childcare and working all under one roof.”