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. Additionally, the bill stipulates that no state agency can create rules that are more stringent than federal regulations in implementing this section.

Amendments to K.S.A. 2025 Supp. 72-4357 include changes to the corporate income tax credit structure for contributions to scholarship granting organizations. The credit percentage for contributions will increase from 70% to 75% for tax years starting after December 31, 2022. The total amount of credits allowed per taxpayer is capped at $500,000, with an overall annual limit of $20 million, which can increase based on the total credits claimed. The secretary of the state will report annually on the credits claimed and the limits for the current year. The bill also includes provisions for carrying over excess credits and mandates the adoption of rules for filing supporting documents.

Statutes affected:
As introduced: 72-4357
As Amended by House Committee: 72-4357