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 in tax years commencing after December 31, 2022.

The bill also modifies the aggregate credit limit, increasing it from $10 million to $20 million for any one tax year, with provisions for further increases based on the total amount of credits claimed. The secretary of the state will determine the allocation of tax credits for each scholarship organization in consultation with them. Furthermore, it allows taxpayers to carry over any excess tax credit to future years until fully utilized. The existing law related to these tax credits is repealed, and the act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 72-4357