The bill introduces substantial modifications to the existing tax credit program for low-income students in Kansas, rebranding it as the Kansas K-12 Students Scholarship Program. It broadens eligibility criteria, allowing a greater number of students to qualify for scholarships, and places the program's administration under the oversight of the state treasurer, who will also be responsible for statewide marketing efforts. Notably, the aggregate tax credit limit is increased from $10 million to $20 million for any single tax year, with provisions for further increases based on demand. The term "low income" is removed from the program's title and definitions, and the definition of "eligible student" is expanded to include those under 21 who have received scholarships in previous years.

Additionally, the bill establishes new reporting and auditing requirements for scholarship granting organizations to enhance transparency and accountability. It allows for a 25% increase in the aggregate credit limit for tax credits in the following tax year if specific conditions are met, and stipulates that tax credit allocations for each organization must be determined in consultation with the secretary before any credits are issued. The bill also includes provisions for carrying over excess tax credits to subsequent years and mandates the adoption of rules regarding the filing of supporting documents for claimed tax credits. Several existing statutes related to tax credits are repealed, and the act will take effect upon publication in the statute book.

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