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As Amended by House Committee
{As Amended by Senate Committee of the Whole}
As Amended by Senate Committee
Session of 2025
SENATE BILL No. 87
By Committee on Education
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AN ACT concerning education; relating to the tax credit for low income
student scholarship program; expanding eligibility therefor; eliminating
the eligibility requirement that students shall have been previously
enrolled in public school; increasing the tax credit for contributions
made to such program; providing for aggregate tax credit limit
increases under certain conditions; amending K.S.A. 72-4353 and
K.S.A. 2024 Supp. 72-4352 and 72-4357 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. 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 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 resides in Kansas, has not
graduated from high school or reached the age of 21 years and meets any
one of the following criteria:
(1) Resides in Kansas; and
(2) (A) (i) (A) 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)(B) (i) was enrolled in any of the grades kindergarten or any of
the grades one through eight in any public school in the previous school
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year in which an educational scholarship is first sought for the child; or
(b)(ii) 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)(2) has received an educational scholarship under the program and
has not graduated from high school or reached the age of 21 years;
(3) has been in foster care or placed in a kinship care placement at
any time prior to graduation from high school or reaching the age of 21
years;
(4) has a parent who is on active duty with any branch of the armed
forces of the United States or who was killed in the line of duty; or
(5) has a parent who is an emergency medical service provider,
firefighter or law enforcement officer as such terms are defined in K.S.A.
75-4364, and amendments thereto:
(A) (i) Is on active duty with any branch of the armed forces of
the United States;
(ii) sustained a service-connected injury or disability as described
in K.S.A. 75-4364, and amendments thereto; or
(iii) died while serving in military service; or
(B) (i) was injured or disabled while performing duties as a public
safety officer; or
(ii) died as a result of injury sustained while performing duties as
a public safety officer.
(e) "Injury" and "disability" mean the same as defined in K.S.A.
75-4364, and amendments thereto.
(f) "Parent" includes a guardian, custodian or other person with
authority to act on behalf of the child.
(f)(g) "Program" means the tax credit for low income students
scholarship program established in K.S.A. 72-4351 through 72-4357, and
amendments thereto.
(g)(h) "Public safety officer" means a law enforcement officer,
firefighter or emergency medical service provider as such terms are
defined in K.S.A. 75-4364, and amendments thereto.
(i) "Public school" means any school operated by a unified school
district under the laws of this state.
(h)(j) "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 of its intention to participate in the
program; and
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(4) complies with the requirements of the program.
(i)(k) "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)(l) "School district" or "district" means any unified school district
organized and operating under the laws of this state.
(k)(m) "School year" means the same as defined in K.S.A. 72-5132,
and amendments thereto.
(l)(n) "Secretary" means the secretary of revenue.
(m)(o) "State board" means the state board of education.
Sec. 2. 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
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 that such student is an eligible student under this program,
provided the state board and the board of education of the school district in
which the eligible student was enrolled the previous school year have
received written consent from such eligible student's parent authorizing the
release of such information. The state board shall provide such written
notification not later than 45 days after a scholarship granting
organization requests such verification from the state board.
(d) Upon receipt of information in accordance with K.S.A. 72-
4354(a)(2), and amendments thereto, the state board 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 not more than $8,000 in educational
scholarships may be awarded under this program with respect to an
eligible student.
Sec. 3. 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
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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{ 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 each tax
year, 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) In each tax year commencing after December 31, 2024 2025, 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 the secretary determines that the
total amount of credits claimed exceeds 75% of the aggregate credit limit,
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such aggregate credit limit shall be increased by 25% for the succeeding
tax year, except that in no event shall such aggregate credit limit exceed
$20,000,000 $25,000,000.
(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. 4. K.S.A. 72-4353 and K.S.A. 2024 Supp. 72-4352 and 72-4357
are hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its
publication in the statute book.
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