Extending the tax credit for certain contributions to community colleges and technical colleges for capital improvements, deferred maintenance or the purchase of technology or equipment.

Session of 2026
HOUSE BILL No. 2645
By Committee on Taxation
Requested by Heather Morgan on behalf of community colleges
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AN ACT concerning income taxation; relating to credits; extending the tax
credit for certain contributions to community colleges and technical
colleges for capital improvements, deferred maintenance or the
purchase of technology or equipment; amending K.S.A. 2025 Supp. 79-
32,261 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 79-32,261 is hereby amended to read as
follows: 79-32,261. (a) (1) On and after July 1, 2008, any taxpayer who
contributes in the manner prescribed by this paragraph to a community
college located in Kansas for capital improvements, to a technical college
for deferred maintenance or the purchase of technology or equipment or to
a postsecondary educational institution located in Kansas for deferred
maintenance, shall be allowed a credit against the tax imposed by the
Kansas income tax act, the premium tax or privilege fees imposed
pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
measured by net income of financial institutions imposed pursuant to
article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto. The tax credit allowed by this paragraph is applicable for the tax
year 2008 for any contributions made on and after July 1, 2008, and for the
tax years 2009, 2010, 2011 and 2012 for any contributions made during
the entire tax year. The amount of the credit allowed by this paragraph
shall not exceed 60% of the total amount contributed during the taxable
year by the taxpayer to a community college or a technical college located
in Kansas for such purposes. The amount of the credit allowed by this
paragraph shall not exceed 50% of the total amount contributed during the
taxable year by the taxpayer to a postsecondary educational institution for
such purposes. If the amount of the credit allowed by this paragraph for a
taxpayer who contributes to a community college or a technical college
exceeds the taxpayer's income tax liability imposed by the Kansas income
tax act, such excess amount shall be refunded to the taxpayer. If the
amount of the tax credit for a taxpayer who contributes to a postsecondary
educational institution exceeds the taxpayer's income tax liability for the
taxable year, the amount which exceeds the tax liability may be carried
over for deduction from the taxpayer's income tax liability in the next
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succeeding taxable year or years until the total amount of the tax credit has
been deducted from tax liability, except that no such tax credit shall be
carried over for deduction after the third taxable year succeeding the
taxable year in which the contribution is made. Prior to the issuance of any
tax credits pursuant to this paragraph, the structure of the process in which
contributions received by a community college, a technical college or a
postsecondary educational institution qualify as tax credits allowed and
issued pursuant to this paragraph shall be developed by a community
college, a technical college and a postsecondary educational institution in
consultation with the secretary of revenue and the foundation or
endowment association of any such community college, technical college
or postsecondary educational institution in a manner that complies with
requirements specified in the federal internal revenue code of 1986, as
amended, so that contributions qualify as charitable contributions
allowable as deductions from federal adjusted gross income.
(2) On and after July 1, 2022, any taxpayer who contributes in the
manner prescribed by this paragraph to a community college or technical
college located in Kansas for capital improvements, deferred maintenance
or the purchase of technology or equipment shall be allowed a credit
against the tax imposed by the Kansas income tax act, the premium tax or
privilege fees imposed pursuant to K.S.A. 40-252, and amendments
thereto, or the privilege tax as measured by net income of financial
institutions imposed pursuant to article 11 of chapter 79 of the Kansas
Statutes Annotated, and amendments thereto. The tax credit allowed by
this paragraph is applicable for the tax year years 2022 for any
contributions made on and after July 1, 2022, and for the tax years 2023,
2024, 2025 and 2026 through 2031 for any contributions made during the
entire tax year. The amount of the credit allowed by this paragraph shall
equal 60% of the total amount contributed during the taxable year by the
taxpayer to a community college or a technical college located in Kansas
for such purposes. Prior to the issuance of any tax credits pursuant to this
paragraph, the structure of the process in which contributions received by
a community college or technical college qualify as tax credits allowed
and issued pursuant to this paragraph shall be developed by a community
college and technical college in consultation with the secretary of revenue
and the foundation or endowment association of any such community
college or technical college in a manner that complies with requirements
specified in the federal internal revenue code of 1986, as amended, so that
contributions qualify as charitable contributions allowable as deductions
from federal adjusted gross income.
(b) (1) Upon receipt of any contributions to a community college
made pursuant to the provisions of subsection (a)(1), the treasurer of the
community college shall deposit such contributions to the credit of the
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capital outlay fund of such community college established as provided by
K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
shall be made for the purposes described in K.S.A. 71-501(a), and
amendments thereto, except that expenditures shall not be made from such
fund for new construction or the acquisition of real property for use as
building sites or for educational programs.
(2) Upon receipt of any contributions to a technical college made
pursuant to the provisions of subsection (a)(1), such contributions shall be
deposited to the credit of a deferred maintenance fund or a technology and
equipment fund established by the technical college which received the
contribution. Expenditures from such fund shall be made only for the
purpose as provided in subsection (b)(1).
(3) Upon receipt of any such contributions to a postsecondary
educational institution made pursuant to the provisions of subsection (a)
(1), such contributions shall be deposited to the credit of the appropriate
deferred maintenance support fund of the postsecondary educational
institution that received the contribution. Expenditures from such fund
shall be made only for the purposes designated for such fund pursuant to
law.
(4) Upon receipt of any such contributions to a community college or
technical college made pursuant to the provisions of subsection (a)(2), the
treasurer of the community college or technical college shall deposit such
contributions to the credit of the capital outlay fund of such community
college or technical college established as provided by K.S.A. 71-501a,
and amendments thereto. Expenditures from such fund shall be made for
the purposes designated for such fund pursuant to law.
(c) (1) In no event shall the total amount of credits allowed under
subsection (a)(1) for taxpayers who contribute to any one such community
college or technical college exceed the following amounts: For the tax year
2008, an amount not to exceed $78,125; for the tax year 2009, an amount
not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
amount not to exceed $208,233.33.
(2) In no event shall the total of credits allowed under subsection (a)
(1) for taxpayers who contribute to postsecondary educational institutions
exceed the following amounts: For the tax year 2008, an amount not to
exceed $5,625,000; for the tax year 2009, an amount not to exceed
$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
exceed $15,000,000. Except as otherwise provided, the allocation of such
tax credits for each individual state educational institution shall be
determined by the state board of regents in consultation with the secretary
of revenue and the university foundation or endowment association of
each postsecondary educational institution, and such determination shall
be completed prior to the issuance of any tax credits pursuant to subsection
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(a)(1). Not more than 40% of the total of credits allowed under subsection
(a)(1) shall be allocated to any one postsecondary educational institution
unless all such postsecondary educational institutions approve an
allocation to any one such postsecondary educational institution which
exceeds 40% of the total of such credits allowed under subsection (a)(1).
(3) For the tax years 2022 through 2026 2031 , the amount of such
credit awarded under subsection (a)(2) for each taxpayer shall not exceed
$250,000 per tax year.
(4) In no event shall the total of credits allowed under subsection (a)
(2) for contributions to any one community college or technical college
exceed $500,000 per tax year.
(5) In no event shall the total of credits allowed under subsection (a)
(2) exceed $5,000,000 for each tax year that the credit remains in effect.
(d) As used in this section: (1) "Community college" means a
community college established under the provisions of the community
college act;
(2) "deferred maintenance" means the maintenance, repair,
reconstruction or rehabilitation of a building located at a technical college
or a postsecondary educational institution which has been deferred, any
utility systems relating to such building, any life-safety upgrades to such
building and any improvements necessary to be made to such building in
order to comply with the requirements of the Americans with disabilities
act or other federal or state law, except that for taxable years commencing
after December 31, 2013, deferred maintenance shall not include any
maintenance, repair, reconstruction or rehabilitation of any building in
which any abortion, as defined in K.S.A. 65-6701, and amendments
thereto, is performed;
(3) "postsecondary educational institution" means the university of
Kansas, Kansas state university of agriculture and applied science, Wichita
state university, Emporia state university, Pittsburg state university, Fort
Hays state university and Washburn university of Topeka; and
(4) "technical college" means a technical college as designated
pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
32,464 and 74-32,465, and amendments thereto, and the institute of
technology at Washburn university.
(e) (1) Any taxpayer not subject to Kansas income, privilege or
premiums tax who contributes to a community college, technical college
or postsecondary educational institution, hereinafter designated the
transferor, may sell, assign, convey or otherwise transfer tax credits
allowed and earned pursuant to this section. The sale price of a tax credit
shall be at least 50% of the full value of the credit. Such credit shall be
deemed to be allowed and earned by any such taxpayer which is only
disqualified therefrom by reason of not being subject to such Kansas taxes.
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The taxpayer acquiring earned credits, hereinafter designated the
transferee, may use the amount of the acquired credits to offset up to 100%
of the taxpayer's income, privilege or premiums tax liability for the taxable
year in which such acquisition was made. Such credits may be sold or
transferred only one time and, if sold or transferred, shall be transferred in
the tax year such credit is earned or the two successive tax years. A
transferred credit shall be claimed in the year purchased. The transferor
shall enter into a written agreement with the transferee establishing the
terms and conditions of the sale or transfer and shall perfect such transfer
by notifying the secretary of revenue in writing within 30 calendar days
following the effective date of the transfer, subject to the review and
approval or denial of such transfer by the secretary of revenue. The
transferor and transferee shall provide any information pertaining to the
sale or transfer as may be required by the secretary of revenue to
administer and carry out the provisions of this section. The amount
received by the transferor of such tax credit shall be taxable as income of
the transferor, and the excess of the value of such credit over the amount
paid by the transferee for such credit shall be taxable as income of the
transferee.
(2) The provisions of this subsection shall not apply to tax credits
earned pursuant to subsection (a)(2).
(f) The secretary of revenue shall submit an annual report to the
legislature to assist the legislature in the evaluation of the utilization of any
credits claimed pursuant to this act, including information specific as to
each community college, technical college or postsecondary educational
institution. Such report shall be due on or before the first day of the
legislative session following the tax year in which the credits were
claimed.
(g) The secretary of revenue shall adopt rules and regulations
necessary to administer the provisions of this section.
Sec. 2. K.S.A. 2025 Supp. 79-32,261 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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