The bill establishes Kansas's participation in the federal tax credit program for contributions to scholarship granting organizations, effective for taxable years beginning after December 31, 2026. The state treasurer is tasked with providing necessary information to the federal treasury, including a list of eligible scholarship organizations in Kansas. Additionally, the bill amends existing tax credit provisions, allowing a 70% credit for contributions made to scholarship organizations for tax years starting after December 31, 2016, and increasing the credit to 75% for contributions made after December 31, 2022.

Significant changes include the repeal of the previous credit limit of $10 million, which is now increased to $20 million for any one tax year. The bill also introduces a mechanism for adjusting the aggregate credit limit based on the total credits claimed, allowing for a potential increase to $30 million if claims exceed 75% of the limit. Furthermore, it allows taxpayers to carry over any excess credit to future tax years. The secretary of the state is given authority to adopt regulations regarding the documentation required for claiming these credits.

Statutes affected:
As introduced: 72-4357