The proposed bill establishes an education opportunity tax credit for Kansas residents with dependent children who are eligible for public school but not enrolled, effective from the tax year 2025. Taxpayers can claim a credit based on actual expenditures for private school tuition and related costs, capped at $8,000 for accredited schools and $4,000 for non-accredited schools, with a total credit limit of $125 million for the first year. The bill requires taxpayers to provide valid social security numbers for their dependents and disallows claims if the child has received a scholarship from another program. It also mandates annual reporting by the Department of Revenue, outlines penalties for fraudulent claims, and shifts the burden of proof in legal challenges regarding the credit's application to the state. Additionally, it allows taxpayers to claim the credit in advance during the tax year and removes certain provisions related to the Department of Education's verification of public school enrollment.

In addition to the education tax credit, the bill modifies tax regulations for individuals and entities in Kansas, particularly concerning contributions to first-time home buyer and adoption savings accounts, with specified contribution limits. It allows taxpayers to apply early contributions to the prior taxable year when filing returns and includes provisions for subtracting certain income types from federal adjusted gross income, such as retirement benefits and military bonuses. The bill also repeals K.S.A. 2024 Supp. 79-32,117, indicating a significant change in the tax code. The act is set to take effect upon publication in the statute book, ensuring prompt implementation of the new regulations.

Statutes affected:
As introduced: 79-32
As Amended by Senate Committee: 79-32