The bill introduces an education opportunity tax credit for Kansas residents with dependent children not enrolled in public schools, effective for tax year 2025 and beyond. Taxpayers can receive a credit of $8,000 for each dependent child enrolled full-time in an accredited private school, or $4,000 for those in non-accredited private schools, with a total cap of $125 million for the first year. The bill requires taxpayers to provide valid Social Security numbers for their dependent children and prohibits claiming the credit if the child has received a scholarship from another program. It also outlines the claiming process, assigns the Kansas Department of Revenue to monitor usage and fraud, and establishes penalties for false claims, while clarifying that the state holds the burden of proof in legal challenges.

Additionally, the bill modifies the Kansas tax code regarding adoption savings accounts and first-time home buyer savings accounts. For taxable years starting after December 31, 2024, individuals can contribute up to $6,000 to an adoption savings account, or $12,000 for married couples, with earnings from these accounts exempt from state income tax. Contributions to first-time home buyer savings accounts can be applied to the prior taxable year if elected during tax filing, with limits set at $3,000 for individuals and $6,000 for couples. The bill also repeals K.S.A. 2024 Supp. 79-32,117, which may have contained previous tax provisions, and establishes a deadline of April 15, 2025, for claims related to federal net operating loss carrybacks. Overall, the bill aims to provide tax relief and incentives for adoption and home purchases while streamlining tax modification processes.

Statutes affected:
As introduced: 79-32