The proposed legislation, known as the Endow Kansas Tax Credit Act, establishes a tax credit for individuals and corporations who make endowment gifts to qualified community foundations. Starting from taxable years after December 31, 2025, taxpayers can receive a credit equal to 70% of their endowment gift, provided the gift is a minimum of $500. The total aggregate amount of credits is capped at $3 million for tax year 2026, increasing to $4 million in 2027 and $5 million in 2028 and beyond. Additionally, there are limits on the amount of credit that can be claimed by individual taxpayers, married couples, and corporations, with provisions for carrying forward any unused credits for up to five years.

To qualify for the tax credit, community foundations must apply for certification from the Department of Revenue, which will maintain a list of certified foundations. Taxpayers must also apply for credits and provide documentation of their endowment gifts. The legislation outlines specific definitions for terms such as "endowment gift," "permanent endowment fund," and "qualified community foundation," ensuring clarity in the implementation of the tax credit. The Secretary of Revenue is authorized to adopt necessary rules and regulations for the administration of the act.