Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
January 31, 2023
The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 96 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 96 is
respectfully submitted to your committee.
SB 96 would allow contributions to eligible charitable organizations operating pregnancy
centers or residential maternity facilities to receive a 70.0 percent tax credit beginning in tax year
2023. Eligible charitable organizations would be required to be exempt from federal income
taxation and a nonprofit organization organized under the laws of this state. The pregnancy center
or residential maternity facility would be required to maintain a dedicated phone number for
clients; maintain in this state its primary physical office, clinic, or residential home that is open for
clients for a minimum of 20 hours a week, excluding state holidays; offer services, at no cost to
the client, that provide assistance to women in order to carry their pregnancy to term, encourage
parenting or adoption, prevent abortion, and promote healthy childbirth; and utilize trained and
licensed medical professionals to perform any available medical procedures.
Tax credits would be limited to $10.0 million per tax year and tax credits for contributions
to a single eligible charitable organization would be limited to $5.0 million per tax year. If the tax
credit amount exceeds the taxpayer’s Kansas adjusted gross income for that taxable year, then the
amount that exceeds the Kansas adjusted gross income could be carried forward for up to five
years. The bill includes administrative requirements and procedures for the qualification and
certification of an eligible charitable organization, the allocation of tax credits if the aggregate
amount of tax credits requested is above the limit, and the reallocation of any unused tax credits.
The Department of Revenue indicates that there is no information to accurately estimate
the number of taxpayers that would claim this new tax credit or the amount of contributions to
eligible charitable organizations to accurately estimate the fiscal effect of SB 96. However, the The Honorable Caryn Tyson, Chairperson
Page 2—SB 96
bill limits the maximum credits allowed to $10.0 million per tax year. For each $1.0 million in
contributions to eligible charitable organizations, then $700,000 in tax credits could be claimed.
The Department indicates that the bill would require $142,868 from the State General Fund
in FY 2024 to implement the bill and to modify the automated tax system. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required. Any fiscal effect associated with SB 96 is not
reflected in The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
Bobbi Mariani, Insurance Department