The bill establishes an education opportunity tax credit for Kansas residents with dependent children who are eligible for public school but are attending private school instead. Starting in tax year 2025, taxpayers can claim a credit based on actual tuition and related costs, capped at $8,000 for accredited private schools and $4,000 for non-accredited schools, with a total credit limit of $125 million for the first year. Taxpayers must provide valid social security numbers for their dependent children and are ineligible for the credit if the child has received a scholarship from another program. The bill also mandates annual reporting by the Department of Revenue, outlines penalties for fraudulent claims, and allows taxpayers to claim the credit in advance, with provisions for refunds if the credit exceeds tax liability.

Additionally, the bill modifies the Kansas tax code regarding contributions and earnings from savings accounts for first-time home buyers and adoption. For taxable years beginning after December 31, 2024, individuals can contribute up to $6,000 for adoption savings accounts and $3,000 for first-time home buyer accounts, with early contributions applicable to the previous tax year. The bill also includes adjustments to federal adjusted gross income, allowing for specific subtractions and repeals K.S.A. 2024 Supp. 79-32,117, indicating a significant change in tax treatment. The act will take effect upon publication in the statute book, ensuring immediate implementation after legislative approval.

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