Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.
Impact
The impact of HB2156 is expected to be significant on state tax revenues and educational funding frameworks. By allowing for substantial tax credits, the bill may encourage higher enrollment in private schools, potentially shifting resources away from public schools. As the funding for the credits could reduce available tax revenues, discussions surrounding equitable educational funding could arise, with concerns over whether public school systems might suffer from reduced funding as a result. Additionally, the eligibility requirements, such as requiring valid Social Security numbers for dependents, aim to ensure compliance and reduce potential fraud related to the tax credits.
Summary
House Bill 2156 introduces an education opportunity tax credit designed to assist taxpayers with dependent children who are not enrolled in public schools. For tax year 2025 and beyond, eligible taxpayers can claim a credit of up to $8,000 for each dependent child enrolled full-time in an accredited private school, or $4,000 for those in nonaccredited schools. The overall limit on credits for the program is set at $125 million for the initial year, with the potential for increases in following years based on demand. The bill aims to provide financial relief to families who opt for private education for their children, thereby promoting school choice.
Contention
Notable points of contention surrounding HB2156 include criticism from proponents of public school funding, who argue that the bill could exacerbate inequalities in the education system. Critics claim it prioritizes funding for private education at the expense of public schools. Furthermore, there is concern regarding the prioritization of limited tax credits, which may favor those who have previously benefited from such programs, potentially sidelining first-time applicants. The acknowledgment that individuals who receive scholarships under existing programs are ineligible for these credits adds to the complexity and debate surrounding educational funding policies in the state.
Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children not enrolled in public school.
Establishing the ad astra opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children not enrolled in public school.
Providing additional student eligibility under the tax credit for low income students scholarship program and increasing the amount of the tax credit for contributions made pursuant to such program.
Expanding the tax credit for low income students scholarship program act to allow students enrolled in underperforming school districts to be eligible for a scholarship.
Establishing the personal hygiene fund and program within the Kansas department of children and families and providing an individual income tax credit for taxpayer contributions to the personal hygiene fund.
Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.
House Substitute for SB 83 by Committee on K-12 Education Budget - Making appropriations for the state department of education for FY 2024, establishing the sunflower education equity act to provide education savings accounts for qualified students, requiring school districts to provide a salary increase to all licensed teachers and defining enrollment of small school districts as the highest enrollment from the preceding four years under the Kansas school equity and enhancement act.
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.
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.
Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.
Providing an individual income tax credit for certain residential solar and wind energy property expenditures, a subtraction modification to permit the carryforward of certain net operating losses for individuals and a subtraction modification for the federal work opportunity tax credit and the employee retention credit disallowances.
Exempting all social security benefits from Kansas income tax, providing income tax subtraction modifications for retirement plan amounts, federal work opportunity tax credit and employee retention credit disallowances and the carryforward of certain net operating losses, increasing the Kansas standard deduction by a cost-of-living adjustment and excluding social security payments from household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased homestead property tax refund claims.
Enacting the medical autonomy/accessibility and truth act to remove certain provisions regarding abortion from the no taxpayer funding for abortion act, the woman's-right-to-know act and the pain-capable unborn child act to allow for insurance coverage for abortions, provide tax benefits for abortion-related services and remove inaccurate statements regarding the risks of abortion.