Increasing the income tax credit amount for adoption expenses and making the credit refundable and increasing the income tax credit amount for household and dependent care expenses.
Impact
The implementation of SB147 would directly influence state tax laws by enhancing the existing framework around tax credits related to adoption. By increasing the credit amount and making it refundable, the bill aims to alleviate the financial burden on families looking to adopt children, thereby promoting a more supportive environment for adoption in the state. Proponents of the bill argue that these changes could lead to an increase in the number of adoptions, as more families will be encouraged by the reduced financial impact.
Summary
SB147 aims to expand the financial support for adopting families by increasing the income tax credit amount for expenses related to adoption. Additionally, the bill seeks to make this credit refundable, allowing those who may not owe taxes to still benefit from the credit. This move is targeted at encouraging adoption and supporting families who take on the significant costs associated with bringing a child into their home through adoption.
Contention
While SB147 has garnered broad support in the Senate, there are concerns regarding the state's budget implications and the sustainability of funding these refundable tax credits. Opponents argue that introducing refundable credits can create a significant strain on the state’s resources, especially if the anticipated increase in adoption does not materialize. These discussions highlight the tension between providing support for adoption and ensuring fiscal responsibility in the state budget.
Establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, increasing the tax credit amount for adoption expenses and making the credit refundable and providing a sales tax exemption for pregnancy resource centers and residential maternity facilities.
Establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities and establishing a child tax credit, increasing the tax credit amount for adoption expenses and making the credit refundable and providing a sales tax exemption for pregnancy resource centers and residential maternity facilities.
Enacting the adoption savings account act allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act, increasing the income tax credit amount for adoption expenses, establishing an income, privilege and premium tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities and providing for a sales tax exemption for purchases by pregnancy resource centers and residential maternity facilities.
Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.