KS SB386

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

State treasurer must annually provide the U.S. Treasury with a list of qualifying scholarship granting organizations located in Kansas

Aggregate annual tax credit limit for the low income students scholarship program increases from $10,000,000 to $20,000,000 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% for the following year, up to a maximum of $30,000,000

Individual taxpayer contributions to scholarship granting organizations remain capped at $500,000 per tax year, with a 75% credit rate for contributions made after December 31, 2022