SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 96
As Recommended by Senate Committee on
Assessment and Taxation
Brief*
SB 96 would create the Pregnancy Resource Act (Act),
which would provide for a tax credit for contributions to
nonprofit pregnancy centers or residential maternity centers
exempt from federal income tax pursuant to section 501(c)(3)
of the federal Internal Revenue Code, provided that such
centers:
●Maintain a dedicated phone number for clients;
●Maintain a primary physical office, clinic, or
residential home in Kansas for a minimum of 20
hours a week, excluding state holidays;
●Offer services free of charge to clients for the
express purpose of providing assistance to women
in carrying pregnancies to term, preventing
abortion, and promoting healthy childbirths, and
●Utilize trained and licensed medical professionals
in the performance of any available medical
procedures.
The credit could be claimed against income, privilege, or
premium tax liability beginning tax year 2023, in an amount
equal to 70.0 percent of voluntary contributions made to such
centers, and could be carried forward for up to five future tax
years following the tax year in which the eligible contribution
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org was made. Contributions would be prohibited from being
payment for services rendered.
The aggregate amount of credits claimed would be
limited to $10.0 million per tax year, with no more than $5.0
million per tax year in credits claimed for contributions to any
single organization.
Administration of Credits
Taxpayers claiming the credit would be required to
provide the Department of Revenue (Department) with the
amount of the contribution and the name of the organization
to which it was made. Prior to claiming credits, taxpayers
would be required to make application on forms provided by
the Department certifying the dollar amount of the
contribution made or to be made within the calendar year.
The Department would be required to allocate credits
within 30 days after the receipt of an application. If the full
credit amount cannot be allocated due to the annual
aggregate limit having been reached, the Department would
be required to notify applicants within 30 days of any amount
to be allocated. Prospective contributions would be required
to be made within 90 days of the allocation of a credit, which
would otherwise be canceled and reallocated.
Eligible charitable organizations would be required to
provide the Department with a written certification, made
under penalty of perjury, of eligibility in regard to the
requirements specified by the bill, along with any other
information the Department would require to administer its
provisions. The Department would be required to review each
such certification and make a determination of eligibility, and
make publicly available a list of eligible organizations. The
Department would be authorized to periodically request
recertification from organizations.
2- 96 Credits claimed by S-corporations, partnerships, limited
liability companies, or other pass-through entities would be
distributed proportionally by shareholders, partners, or
members according to ownership or as mutually agreed to by
the parties.
Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by a client of Insight Women’s Center and
representatives of Advice and Aid Pregnancy Center;
Embrace of Wichita; Insight Women’s Center; KC Pregnancy
Clinic; and Lifeline Children’s Services. Proponents generally
stated nonprofit pregnancy centers and residential maternity
centers provide valuable services to pregnant women and
children and relieve taxpayers of some of the burden of
supporting families in crisis, and the bill would increase
donations to such organizations and allow them to increase
services.
Written-only proponent testimony was provided by a
client of Advice and Aid Pregnancy Center and
representatives of Campaign Life Missouri, Heart Choices
Pregnancy & Parenting Resource Center, Kansas Catholic
Conference, Kansas Family Voice, Kansans for Life,
Pregnancy & Family Center of Southeast Kansas, and
Wyandotte County Pregnancy Clinic.
Written-only opponent testimony was provided by a
representative of Planned Parenthood of Great Plains.
No other testimony was provided.
3- 96 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget, the Department of Revenue indicates that while
the number of taxpayers who would claim the tax credit
cannot be estimated, up to $10.0 million per tax year in
credits could be claimed. Any fiscal effect associated with the
bill is not reflected in The FY 2024 Governor’s Budget
Report.
Income taxation; tax credits; charitable contributions; pregnancy centers; residential
maternity facilities
4- 96