This bill amends the tax credit for the low-income student scholarship program in Kansas by expanding eligibility criteria and increasing the tax credit for contributions made to the program. Notably, it eliminates the requirement that students must have been previously enrolled in public school to qualify for the scholarship. The bill also increases the maximum educational scholarship amount to $8,000 per school year and allows for an increase in the aggregate tax credit limit under certain conditions, which could potentially raise the limit to $20 million.

Additionally, the bill modifies the tax credit structure for contributions to scholarship granting organizations. It establishes a tiered system where the credit percentage increases over time, starting at 70% for contributions made in the 2016-2022 tax years, rising to 75% for 2022-2025, and reaching 100% for contributions made after 2024. The total amount of credits allowed is capped at $10 million per year, but this limit can be increased by 25% if claims exceed 75% of the aggregate limit in subsequent years. The bill also includes provisions for taxpayers to carry over any excess credit to future tax years.

Statutes affected:
As introduced: 72-4353, 72-4352, 72-4357, 72-5132