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{As Amended by Senate Committee of the Whole}
As Amended by Senate Committee
Session of 2026
SENATE BILL No. 521
By Committee on Assessment and Taxation
2-27
AN ACT concerning income taxation; relating to the child day care
services assistance tax credit; providing for credits for payment of
employee's child care and contributions to a third party for increased
child care options related expenses {and certain employer
contributions to expand community child care availability} ; amending
K.S.A. 2025 Supp. 79-32,190 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 79-32,190 is hereby amended to read as
follows: 79-32,190. (a) Any taxpayer that pays for or provides expenses
related to the provision of child day care services, including the provision
of the service of locating such services, to its for the taxpayer's employees
or that provides facilities and necessary equipment for child day care
services shall be allowed a credit against the privilege or income tax
imposed by articles 11 and 32 of chapter 79 of the Kansas Statutes
Annotated, and amendments thereto, as follows for the following expenses:
(1) (A) Paying for child care for employees;
(B) establishing or expanding a child care program that is primarily
used by employees;
(C) paying for referral services that connect employees to child care
providers; and
(D) providing for collaborative child care investment with other
employers.
(2) Subject to the limits set forth in subsection (d) (c) {(d)} , the
taxpayer shall be allowed a credit of 30%75% of the total amount
expended pursuant to the expenses provided in paragraph (1) in the state
during the taxable year by a taxpayer for child day care services purchased
to provide care for the dependent children of the taxpayer's employees or
for the provision of the service of locating such services for such children;
(2) (A) in the taxable year in which a facility providing child day care
services in the state for use primarily by the dependent children of the
taxpayer's employees is established, 50% of the total amount expended
during such year by a taxpayer in the establishment and operation of such
facility;
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SB 521—Am. by SCW 2
(B) in the taxable years other than the taxable year to which
paragraph (2)(A) applies, 30% of the amount equal to the total amount
expended during the taxable year by a taxpayer for the operation of a
facility described in paragraph (2)(A) less the amount of moneys received
by the taxpayer for use of such facility for child day care services;
(3) (A) in the taxable year in which a facility providing child day care
services in the state for use primarily by the dependent children of the
taxpayers' employees is established in conjunction with one or more other
taxpayers, 50% of the total amount expended during such year by a
taxpayer in the establishment and operation of such facility;
(B) in the taxable years other than the taxable year to which
paragraph (3)(A) applies, 30% of the amount equal to the total amount
expended during the taxable year by a taxpayer for the operation of a
facility described in paragraph (3)(A) less the amount of moneys received
by the taxpayer for use of such facility for child day care services; and
(4) for all taxable years commencing after December 31, 2020, 50%
of the amount equal to the total amount expended during the taxable year
by a taxpayer as payments to an organization providing access to available
child day care services for the taxpayer's employees.
(b) Any taxpayer that pays contributions to a third party that help
improve the availability of child care options shall be allowed a credit
against the privilege or income tax imposed by articles 11 and 32 of
chapter 79 of the Kansas Statutes Annotated, and amendments thereto, in
an amount for expenses as follows:
(1) (A) Establishing or expanding a child care program, including
support to establish or maintain licensing;
(B) enabling a program to purchase learning materials or play
equipment;
(C) compensating professional development for child care staff;
(D) providing child care tuition assistance for families in need; and
(E) providing referral services that connect families to child care
providers.
(2) Subject to the limits set forth in subsection (d), the taxpayer shall
be allowed a credit of:
(A) 75% of the total amount expended pursuant to paragraph (1) if
the recipient accepts and serves children and families receiving a child
care subsidy; or
(B) 50% of the total amount expended pursuant to paragraph (1) if
the recipient does not accept or serve children and families receiving a
child care subsidy.
(c) {Any employer that financially contributes to a third party that
expands the availability of community child care shall be allowed a
credit against the privilege or income tax imposed by articles 11 and 32
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SB 521—Am. by SCW 3
of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto, in an amount for expenses as follows:
(1) (A) Establishing or expanding a child care program, including
support to establish or maintain licensing;
(B) enabling a program to purchase learning materials or play
equipment;
(C) compensating professional development for child care staff;
(D) providing child care tuition assistance for families in need; and
(E) providing referral services that connect families to child care
providers.
(2) Subject to the limits set forth in subsection (d), the taxpayer
shall be allowed a credit of:
(A) 75% of the total amount expended pursuant to paragraph (1) if
the recipient accepts and serves children and families receiving a child
care subsidy; or
(B) 50% of the total amount expended pursuant to paragraph (1) if
the recipient does not accept or serve children and families receiving a
child care subsidy.
(c) }No credit shall be allowed under this section unless the child day
care facility or provider is licensed pursuant to Kansas law.
(c)(d)(c){(d)} The credit allowed by subsection (a)(1), (2)(B) and (3)
(B) subsections subsection {subsections} (a) and (b) {and (b)} shall not
exceed $30,000 $100,000 for any taxpayer during any taxable year. The
credit allowed by subsection (a)(2)(A), (3)(A) and (4) shall not exceed
$45,000 for any taxpayer during any taxable year. The amount of the credit
which exceeds the tax liability for a taxable year shall not be refunded to
the taxpayer. If the taxpayer is a corporation having an election in effect
under subchapter S of the federal internal revenue code or a partnership,
the credit provided by this section shall be claimed by the shareholders of
such corporation or the partners of such partnership in the same manner as
such shareholders or partners account for their proportionate shares of the
income or loss of the corporation or partnership.
(d)(e)(d){(e)} The aggregate amount of credits claimed under this act
for any fiscal year shall not exceed $3,000,000.
(e) For tax years 2013 through 2020, the income tax credit provided
by this section shall only be available to taxpayers subject to the income
tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and
amendments thereto, and shall be applied only against such taxpayer's
corporate income tax liability.
{(f) As used in this section, "community child care" means a for-
profit or not-for-profit provider of child care services that is open at least
nine hours per day and located within 45 miles of the employer that is
seeking the credit or such employer's offices.}
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SB 521—Am. by SCW 4
Sec. 2. K.S.A. 2025 Supp. 79-32,190 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after
January 1, 2027, and its publication in the statute book.
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