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Session of 2025
SENATE BILL No. 252
By Committee on Assessment and Taxation
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AN ACT concerning education; relating to the low income students
scholarship program act; expanding eligibility for scholarships to
certain high school students and students eligible to be enrolled in
certain school districts; increasing the tax credit for contributions made
pursuant to such act and the aggregate tax credit limit; providing for
aggregate tax credit limit increases under certain conditions; providing
for program administration by the state treasurer; amending K.S.A. 72-
4351, 72-4353, 72-4355 and 72-4356 and K.S.A. 2024 Supp. 72-4352,
72-4354 and 72-4357 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 72-4351 is hereby amended to read as follows: 72-
4351. The provisions of K.S.A. 72-4351 through 72-4357, and
amendments thereto, shall be known and may be cited as the tax credit for
low income Kansas K-12 students scholarship program act.
Sec. 2. K.S.A. 2024 Supp. 72-4352 is hereby amended to read as
follows: 72-4352. As used in the tax credit for low income Kansas K-12
students scholarship program act:
(a) "Contributions" means monetary gifts or donations and in-kind
contributions, gifts or donations that have an established market value.
(b) "Department" means the Kansas department of revenue.
(c) "Educational scholarship" means an amount not to exceed $8,000
per school year provided to an eligible student, or to a qualified school
with respect to an eligible student, to cover all or a portion of the costs of
education including tuition, fees and expenses of a qualified school and, if
applicable, the costs of transportation to a qualified school if provided by
such qualified school.
(d) "Eligible student" means a child who:
(1) Resides in Kansas; and
(2) (A) (i) Has an annual family income that is less than or equal to
250% of the federal poverty guidelines as determined annually in the
federal register by the United States department of health and human
services under 42 U.S.C. § 9902(2); and
(ii) (a) was enrolled in kindergarten or any of the grades one through
eight 11 in any public school in the previous school year in which an
educational scholarship is first sought for the child; or
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(b) is eligible to be enrolled in any public school in the school year in
which an educational scholarship is first sought for the child and the child
is seven years of age or under; or
(B) (i) is eligible to be enrolled in a public school in the school year
in which an educational scholarship is first sought for the child; and
(ii) such public school is operated by a school district that for the
immediately preceding school year had less than 50% of the students
enrolled in such district who were administered the statewide assessments
in mathematics, English language arts and science achieve a score in such
assessments that was in either of the two highest achievement levels as
established by the state board of education for the 2024-2025 school year,
except that in the event the state board of education alters or changes the
scoring method or achievement levels in any way from the methods or
parameters used for the 2024-2025 school year, the provisions of this
clause shall expire and no longer be required for the eligibility of a child
under subparagraph (B); or
(C) has received an educational scholarship under the program and
has not graduated from high school or reached the age of 21 years.
(e) "Parent" includes a guardian, custodian or other person with
authority to act on behalf of the child.
(f) "Program" means the tax credit for low income Kansas K-12
students scholarship program established in K.S.A. 72-4351 through 72-
4357, and amendments thereto.
(g) "Public school" means any school operated by a unified school
district under the laws of this state.
(h) "Qualified school" means any nonpublic school that:
(1) Provides education to elementary or secondary students;
(2) is accredited by the state board or a national or regional
accrediting agency that is recognized by the state board for the purpose of
satisfying the teaching performance assessment for professional licensure
or is working in good faith toward such accreditation;
(3) has notified the state board and state treasurer of its intention to
participate in the program; and
(4) complies with the requirements of the program.
(i) "Scholarship granting organization" means an organization that
complies with the requirements of this program and provides educational
scholarships to eligible students or to qualified schools in which parents
have enrolled eligible students.
(j) "School district" or "district" means any unified school district
organized and operating under the laws of this state.
(k) "School year" means the same as in K.S.A. 72-5132, and
amendments thereto.
(l) "Secretary" means the secretary of revenue.
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(m) "State board" means the state board of education.
Sec. 3. K.S.A. 72-4353 is hereby amended to read as follows: 72-
4353. (a) There is hereby established the tax credit for low income Kansas
K-12 students scholarship program. The program shall provide eligible
students with an opportunity to attend schools of their parents' choice.
(b) Each scholarship granting organization shall issue a receipt, in a
form prescribed by the secretary, to each contributing taxpayer indicating
the value of the contribution received. Each taxpayer shall provide a copy
of such receipt when claiming the tax credit established in K.S.A. 72-4357,
and amendments thereto.
(c) Prior to awarding an educational scholarship with respect to an
eligible student, unless such student is under the age of six years, the
scholarship granting organization shall receive written verification from
the state board treasurer that such student is an eligible student under this
program, provided the state board treasurer and the board of education of
the school district in which the eligible student was enrolled the previous
school year, if applicable, have received written consent from such eligible
student's parent authorizing the release of such information.
(d) Upon receipt of information in accordance with K.S.A. 72-
4354(a)(2), and amendments thereto, the state board treasurer shall inform
the scholarship granting organization whether an educational scholarship
has been awarded by another scholarship granting organization with
respect to the eligible student.
(e) In each school year, no more than $8,000 in educational
scholarships may be awarded under this program with respect to an
eligible student.
(f) The state treasurer may have nonexclusive authority to market the
Kansas K-12 students scholarship program throughout the state and may
report on the initiatives in the state treasurer's office annual report.
Sec. 4. K.S.A. 2024 Supp. 72-4354 is hereby amended to read as
follows: 72-4354. (a) To be eligible to participate in the program, a
scholarship granting organization shall comply with the following:
(1) The scholarship granting organization shall notify the secretary
and the state board treasurer of the scholarship granting organization's
intent to provide educational scholarships;
(2) upon granting an educational scholarship, the scholarship granting
organization shall report such information to the state board treasurer;
(3) the scholarship granting organization shall provide verification to
the secretary that the scholarship granting organization is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986;
(4) upon receipt of contributions in an aggregate amount or value in
excess of $50,000 during a school year, a scholarship granting
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organization shall file with the state board treasurer either:
(A) A surety bond payable to the state in an amount equal to the
aggregate amount of contributions expected to be received during the
school year; or
(B) financial information demonstrating the scholarship granting
organization's ability to pay an aggregate amount equal to the amount of
the contributions expected to be received during the school year , which
that must be reviewed and approved of in writing by the state board
treasurer;
(5) scholarship granting organizations that provide other nonprofit
services in addition to providing educational scholarships shall not
commingle contributions made under the program with other contributions
made to such organization. A scholarship granting organization under this
subsection shall also file with the state board treasurer , prior to the
commencement of each school year, either:
(A) A surety bond payable to the state in an amount equal to the
aggregate amount of contributions expected to be received during the
school year; or
(B) financial information demonstrating the nonprofit organization's
ability to pay an aggregate amount equal to the amount of the
contributions expected to be received during the school year , which that
must be reviewed and approved of in writing by the state board treasurer;
(6) each qualified school receiving educational scholarships from the
scholarship granting organization shall annually certify to the scholarship
granting organization its compliance with the requirements of the program;
(7) at the end of the calendar year, the scholarship granting
organization shall have its accounts examined and audited by a certified
public accountant. Such audit shall include, but not be limited to,
information verifying that the educational scholarships awarded by the
scholarship granting organization were distributed to qualified schools
with respect to eligible students determined by the state board treasurer
under K.S.A. 72-4353(c), and amendments thereto, and information
specified in this section. Prior to filing a copy of the audit with the state
board treasurer , such audit shall be duly verified and certified by a
certified public accountant; and
(8) if a scholarship granting organization decides to limit the number
or type of qualified schools who will receive educational scholarships, the
scholarship granting organization shall provide, in writing, the name or
names of those qualified schools to any contributor and the state board
treasurer.
(b) No scholarship granting organization shall provide an educational
scholarship with respect to any eligible student to attend any qualified
school with paid staff or paid board members, or relatives thereof, in
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common with the scholarship granting organization.
(c) The scholarship granting organization shall disburse not less than
90% of contributions received pursuant to the program in the form of
educational scholarships within 36 months of receipt of such contributions.
If such contributions have not been disbursed within the applicable 36-
month time period, then the scholarship granting organization shall not
accept new contributions until 90% of the received contributions have
been disbursed in the form of educational scholarships. Any income earned
from contributions must be disbursed in the form of educational
scholarships.
(d) A scholarship granting organization may continue to provide an
educational scholarship with respect to a student who was an eligible
student in the year immediately preceding the current school year.
(e) A scholarship granting organization shall direct payments of
educational scholarships to the qualified school attended by the eligible
student or in which the eligible student is enrolled. Payment may be made
by check made payable to both the parent and the qualified school or to
only the qualified school. If an eligible student transfers to a new qualified
school during a school year, the scholarship granting organization shall
direct payment in a prorated amount to the original qualified school and
the new qualified school based on the eligible student's attendance. If the
eligible student transfers to a public school and enrolls in such public
school after September 20 of the current school year, the scholarship
granting organization shall direct payment in a prorated amount to the
original qualified school and the public school based on the eligible
student's attendance. The prorated amount to the public school shall be
considered a donation and shall be paid to the school district of such public
school in accordance with K.S.A. 72-1142, and amendments thereto.
(f) Each qualified school shall provide a link to the state department
of education's webpage where the reports prepared pursuant to K.S.A. 72-
5170, and amendments thereto, and K.S.A. 2024 Supp. 72-5178, and
amendments thereto, for such school are published. The link shall be
prominently displayed on the school's accountability reports webpage.
(g) By June 1 of each year, a scholarship granting organization shall
submit a report to the state board treasurer for the educational scholarships
provided in the immediately preceding 12 months. Such report shall be in
a form and manner as prescribed by the state board treasurer, approved
and signed by a certified public accountant, and shall contain the following
information:
(1) The name and address of the scholarship granting organization;
(2) the name and address of each eligible student with respect to
whom an educational scholarship was awarded by the scholarship granting
organization;
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(3) the total number and total dollar amount of contributions received
during the 12-month reporting period; and
(4) the total number and total dollar amount of educational
scholarships awarded during the 12-month reporting period and the total
number and total dollar amount of educational scholarships awarded
during the 12-month reporting period with respect to eligible students who
qualified under K.S.A. 72-4352(d), and amendments thereto.
(h) No scholarship granting organization shall:
(1) Provide an educational scholarship with respect to an eligible
student that is established by funding from any contributions made by any
relative of such eligible student; or
(2) accept a contribution from any source with the express or implied
condition that such contribution be directed toward an educational
scholarship for a particular eligible student.
Sec. 5. K.S.A. 72-4355 is hereby amended to read as follows: 72-
4355. (a) On or before the first day of the legislative session in 2026, the
state board and the state treasurer shall jointly prepare and submit a
report to the legislature on the program. On or before the first day of the
legislative session in 2015 2027, and each year thereafter, the state board
treasurer shall prepare and submit a report to the legislature on the
program. Annual reports shall include information reported to the state
board or the state treasurer under subsection (f) of K.S.A. 72-4354(g), and
amendments thereto, and a summary of such information.
(b) On July 1, 2025, or as soon as practicable thereafter, the state
board shall provide a copy of all reports and records relating to the
program to the state treasurer.
Sec. 6. K.S.A. 72-4356 is hereby amended to read as follows: 72-
4356. (a) (1) To qualify for the tax credit allowed by this act, the
scholarship granting organization shall apply each tax year to the state
board treasurer for a certification that the scholarship granting
organization is in substantial compliance with the program based on
information received in the annual audit and yearly report filed by the
scholarship granting organization with the state board treasurer.
(2) The state board treasurer shall prescribe the form of the
application, which that shall include, but not be limited to, the information
set forth in subsection (a)(1).
(b) If the state board treasurer determines that the requirements under
this section were met by the scholarship granting organization, the state
board treasurer shall issue a certificate of compliance to the director of
taxation. Any scholarship granting organization that applied for and
received a certificate of compliance for tax year 2025 from the state board
prior to July 1, 2025, shall not be required to reapply to the state treasurer
for tax year 2025.
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(c) The state board treasurer shall adopt rules and regulations to
implement the provisions of this section.
Sec. 7. K.S.A. 2024 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, and ending
before January 1, 2025, 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; and
(C) for tax years commencing after December 31, 2024, an amount
equal to 100% 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 any
such scholarship granting organization.
(c) (1) Except as otherwise provided in this subsection, for tax year
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2025, and each tax year thereafter, in no event shall the total amount of
credits allowed under this section shall not exceed $10,000,000
$20,000,000 for any one tax year.
(2) In each tax year commencing after December 31, 2024, the
secretary shall determine whether the total amount of credits claimed
pursuant to this subsection exceeds 75% of the aggregate credit limit
established pursuant to this subsection. If such condition is satisfied, the
aggregate credit limit shall be increased by 25% for the succeeding 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. 8. K.S.A. 72-4351, 72-4353, 72-4355 and 72-4356 and K.S.A.
2024 Supp. 72-4352, 72-4354 and 72-4357 are hereby repealed.
Sec. 9. This act shall take effect and be in force from and after its
publication in the statute book.
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