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 definition of "eligible student" is expanded to include children from families with incomes up to 250% of federal poverty guidelines and those enrolled in public schools with low achievement scores. The bill establishes a maximum educational scholarship amount of $8,000 per school year for 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 eligible for tax credits from 70% to 100% for tax years starting after December 31, 2024, and raising the total credit limit from $10 million to $20 million per tax year. It introduces a mechanism for increasing the credit limit by 25% if the total claimed credits exceed 75% of the established limit. The bill also mandates annual performance reports from the state treasurer and the state board, allows taxpayers to carry over excess tax credits, and includes provisions for the secretary to adopt rules regarding documentation for claimed credits. Several existing statutes are repealed, indicating a significant overhaul of the current tax credit system for scholarship organizations.

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