The proposed bill establishes the "child care contribution tax credit act," which allows taxpayers to receive a credit against their Kansas income tax liability for verified contributions made to child care providers or intermediaries. Starting in the taxable year 2026, taxpayers can claim a credit equal to 75% of their contributions, with a maximum credit of $200,000 per tax year and a total cap of $20,000,000 on credits allowed statewide. Unused credits can be carried forward for up to six years. To qualify for the credit, child care providers or intermediaries must apply to the Department of Revenue and issue contribution verifications to taxpayers within 60 days of receiving contributions.

The bill outlines specific eligibility criteria for contributions, including that they must be used to promote child care for children aged 12 and under and that taxpayers must not have a direct financial interest in the recipient child care provider or intermediary. Additionally, contributions cannot be made in exchange for child care services, except when made by employers for their employees' children. If a child care provider or intermediary misuses the contributions, they must repay the value of the tax credit. The bill also defines key terms such as "child care provider" and "intermediary" to clarify the entities involved in the program.