The bill amends the Kansas K-12 students scholarship program act, previously known as the "tax credit for low income" program, by removing references to the low-income designation and redefining key terms. The new definition of "eligible student" now includes children from families with incomes up to 250% of the federal poverty guidelines and those enrolled in public schools with low achievement scores. The bill establishes a scholarship amount of up to $8,000 per school year for these eligible students and outlines the responsibilities of scholarship granting organizations, including compliance with reporting and auditing requirements.

Additionally, the bill modifies the tax credit structure for contributions to scholarship granting organizations, increasing the percentage of contributions that can be credited against tax liabilities from 70% to 100% for contributions made after December 31, 2024, and raising the annual cap on total credits from $10 million to $20 million. It mandates monitoring of total credits claimed by the state treasurer and allows for adjustments to the aggregate credit limit if certain thresholds are met. The bill also introduces a framework for tax credits effective for tax years starting after December 31, 2024, and includes provisions for the secretary to establish rules for documentation supporting credit claims, while repealing several existing statutes to overhaul the current tax credit system.

Statutes affected:
As introduced: 72-4351, 72-4352, 72-5132, 72-4353, 72-4354, 72-4355, 72-4356, 72-4357