KS HB2468

Kansas elects to participate in the federal tax credit program under IRC Section 25F for individual contributions to scholarship granting organizations, effective for tax years beginning after December 31, 2026.

The State Treasurer must annually provide the U.S. Treasury with a list of qualifying scholarship granting organizations located in Kansas, and state agencies are prohibited from implementing rules more stringent than federal requirements.

The aggregate annual tax credit limit for the low-income students scholarship program increases from $10 million to $20 million starting in tax year 2026.

If credits claimed exceed 75% of the aggregate limit in any year after 2026, the limit automatically increases by 25% the following year, up to a maximum cap of $30 million.

The Secretary must submit an annual report to the legislature by January 15 detailing the total credits claimed in the prior year and the current year's credit limit.