Extending the number of years of availability of the income tax credit for contributions to friends of cedar crest association and the Eisenhower foundation.
The implication of HB 2387 is significant in that it modifies the Kansas Statutes Annotated to allow larger contributions to the Cedar Crest Association to be recognized in the form of tax credits. Individual taxpayers can receive a credit of up to $25,000, while corporations can claim up to $50,000. Furthermore, there is a cap on the total aggregate credits that can be claimed in a fiscal year, limited to $350,000. This limits the exposure of the state budget while promoting charitable contributions.
House Bill 2387 amends existing Kansas tax law to extend the income tax credit for contributions made to the Friends of Cedar Crest Association. Originally set to expire after taxable years ending before January 1, 2026, the bill seeks to prolong its availability until January 1, 2036. This extension allows taxpayers to still take advantage of the credit for an additional ten years, thereby incentivizing donations to the association, which promotes the preservation and enhancement of Cedar Crest, the governor's residence in Kansas.
While the bill appears straightforward, there may be points of contention regarding its potential impact on state revenues versus its benefits to local charities. Proponents might argue that the bill encourages philanthropy and aids in preserving state heritage, while critics could concern themselves with the fiscal responsibility of the state. Repealing the previous provisions calls into question whether this credit is appropriately targeting resources toward a worthy cause or if it could lead to financial strains on the tax base, depending on the level of contributions made by taxpayers.