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 contributions made to child care providers or intermediaries. Starting in the taxable year 2026, taxpayers can claim a credit equal to 75% of their verified contributions, with a maximum credit of $200,000 per taxpayer per year. The total amount of credits available under this act is capped at $20 million annually, and any 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 child care provider or intermediary receiving the contribution. Additionally, contributions made in exchange for child care services are generally ineligible unless made by an employer 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," "intermediary," and "person related to the taxpayer."