The bill establishes an education opportunity tax credit for Kansas residents with dependent children who are eligible for public school but not enrolled, effective from 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. To qualify, taxpayers must provide valid Social Security numbers for their dependents 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 and includes penalties for false claims, while allowing taxpayers to claim the credit in advance during the tax year.

Additionally, the bill modifies the Kansas income tax code to facilitate contributions to first-time home buyer and adoption savings accounts, with specified contribution limits. It allows taxpayers to apply contributions to the prior taxable year if elected during filing. The bill also addresses federal net operating losses and estate or trust income adjustments, while repealing K.S.A. 2024 Supp. 79-32,117, indicating a significant shift in tax handling. These changes aim to provide tax relief and promote savings for home buying and adoption, with the act taking effect upon publication in the statute book.

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