The bill introduces an education opportunity tax credit for Kansas residents with dependent children not enrolled in public schools, effective from tax year 2025. Taxpayers can claim a credit of $8,000 for each dependent child attending an accredited private school and $4,000 for those in non-accredited institutions, with a total cap of $125 million for the first year. Eligibility requirements include providing valid social security numbers for dependent children and disallowing claims for children receiving scholarships from a separate program. The bill also mandates the Department of Revenue to work with the state Department of Education on public school enrollment status and requires annual reporting to the legislature on the credit's usage. It establishes penalties for fraudulent claims and clarifies that the state must prove its case in legal challenges regarding the tax credit.

Additionally, the bill modifies the Kansas tax code concerning 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 also be applied to the previous taxable year if elected during the filing process, with limits of $3,000 for individuals and $6,000 for couples. The bill repeals K.S.A. 2024 Supp. 79-32,117, which may have contained prior tax provisions, and sets 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 simplifying the tax modification process.

Statutes affected:
As introduced: 79-32