Electing to participate in the federal tax credit for individual contributions to scholarship granting organizations and increasing the aggregate tax credit limit on the tax credit for low income students scholarship program.

HOUSE BILL No. 2468
AN A CT concerning education; relating to federal tax credits for contributions to
scholarship granting organizations; electing to participate in the federal tax credit for
individual contributions to scholarship granting organizations; relating to the tax
credit for low income students scholarship program; increasing the aggregate tax
credit limit; amending K.S.A. 2025 Supp. 72-4357 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. The state of Kansas hereby elects to participate in
the federal tax credit for contributions of individuals to scholarship
granting organizations pursuant to section 25F of the federal internal
revenue code of 1986, as amended, for all taxable years beginning after
December 31, 2026. On behalf of the state of Kansas and in accordance
with section 25F of the federal internal revenue code of 1986, as
amended, the state treasurer shall annually provide to the secretary of
the treasury or the secretary's delegate any required information,
including, but not limited to, a list of the scholarship granting
organizations that meet the requirements described in section 25F of
the federal internal revenue code of 1986, as amended, and are located
in the state of Kansas. No state department, division or any other
agency shall promulgate any rules and regulations that are more
stringent than the applicable federal law or rules and regulations in
implementing this section.
Sec. 2. K.S.A. 2025 Supp. 72-4357 is hereby amended to read as
follows: 72-4357. (a) (1) There shall be allowed a credit against the
corporate income tax liability imposed upon a taxpayer pursuant to the
Kansas income tax act, the privilege tax liability imposed upon a
taxpayer pursuant to the privilege tax imposed upon any national
banking association, state bank, trust company or savings and loan
association pursuant to article 11 of chapter 79 of the Kansas Statutes
Annotated, and amendments thereto, and the premium tax liability
imposed upon a taxpayer pursuant to the premiums tax and privilege
fees imposed upon an insurance company pursuant to K.S.A. 40-252,
and amendments thereto, for tax years commencing after December 31,
2014, and ending before January 1, 2017, an amount equal to 70% of
the amount contributed to a scholarship granting organization
authorized pursuant to K.S.A. 72-4351 et seq., and amendments
thereto.
(2) There shall be allowed a credit against the tax liability imposed
upon a taxpayer pursuant to the Kansas income tax act, the privilege tax
liability imposed upon a taxpayer pursuant to the privilege tax imposed
upon any national banking association, state bank, trust company or
savings and loan association pursuant to article 11 of chapter 79 of the
Kansas Statutes Annotated, and amendments thereto, and the premium
tax liability imposed upon a taxpayer pursuant to the premiums tax and
privilege fees imposed upon an insurance company pursuant to K.S.A.
40-252, and amendments thereto:
(A) For tax years commencing after December 31, 2016, and
ending before January 1, 2022 2023 , an amount equal to 70% of the
amount contributed to a scholarship granting organization authorized
pursuant to K.S.A. 72-4351 et seq., and amendments thereto; and
(B) for tax years commencing after December 31, 2022, an
amount equal to 75% of the amount contributed to a scholarship
granting organization authorized pursuant to K.S.A. 72-4351 et seq.,
and amendments thereto.
(3)(2) In no event shall the total amount of contributions for any
taxpayer allowed under this subsection exceed $500,000 for any tax
year.
(b) The credit shall be claimed and deducted from the taxpayer's
tax liability during the tax year in which the contribution was made to
HOUSE BILL No. 2468—page 2
any such scholarship granting organization.
(c) (1) For tax year 2026 and each tax year thereafter, in no event
shall the total amount of credits allowed under this section shall not
exceed $10,000,000 $15,000,000 for any one tax year.
(2) On January 15, 2027, and each January 15 thereafter, the
secretary shall submit a report to the legislature on the aggregate
amount of credits claimed during the immediately preceding tax year.
(3) Except as otherwise provided, the allocation of such tax credits
for each scholarship granting organization shall be determined by the
scholarship granting organization in consultation with the secretary, and
such determination shall be completed prior to the issuance of any tax
credits pursuant to this section.
(d) If the amount of any such tax credit claimed by a taxpayer
exceeds the taxpayer's income, privilege or premium tax liability, such
excess amount may be carried over for deduction from the taxpayer's
income, privilege or premium tax liability in the next succeeding year
or years until the total amount of the credit has been deducted from tax
liability.
(e) The secretary shall adopt rules and regulations regarding filing
of documents that support the amount of credit claimed pursuant to this
section.
Sec. 3. K.S.A. 2025 Supp. 72-4357 is hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and was
adopted by that body

HOUSE adopted
Conference Committee Report

Speaker of the House.

Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report

President of the Senate.

Secretary of the Senate.
APPROVED

Governor.