The bill introduces an education opportunity tax credit for Kansas taxpayers with eligible dependent children not enrolled in public school, effective from the tax year 2025. Taxpayers can claim a credit of $8,000 for each dependent child enrolled full-time in an accredited private school or $4,000 for those in a non-accredited private school, with a total cap of $125 million for the first year. To qualify, taxpayers must provide a valid Social Security number for each dependent and cannot claim the credit if the child has received a scholarship from a separate program. The bill also outlines claiming procedures, including the option for advance credit, and establishes penalties for false claims, with the state bearing the burden of proof in legal challenges. The existing law, K.S.A. 2024 Supp. 79-32,117, is amended to incorporate these changes, and the previous section is repealed.

Additionally, the bill amends the Kansas tax code to allow taxpayers to deduct contributions to adoption savings accounts, effective for taxable years beginning after December 31, 2024. Taxpayers can deduct up to $6,000 for individuals and $12,000 for married couples filing jointly, along with any income earned from these accounts. However, if distributions are not used for authorized expenses or are not held for the required minimum length of time, the contributions and earnings will be subject to taxation. The bill also repeals K.S.A. 2024 Supp. 79-32,117, which may have contained previous tax modification provisions, and aims to provide tax benefits for individuals saving for adoption-related expenses while ensuring compliance with specific usage requirements. The act will take effect upon its publication in the statute book.

Statutes affected:
As introduced: 79-32