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 C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
March 10, 2025
The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2387 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2387 is
respectfully submitted to your committee.
Under current law, taxpayers who contribute to the Friends of Cedar Crest Foundation can
receive a non-refundable income tax credit for 50.0 percent of the total amount of the contribution
through tax year 2025. HB 2387 would continue this tax credit through tax year 2035.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- -- --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- -- --
Revenues
State General Fund -- -- ($350,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- -- ($350,000)
FTE Positions -- -- --
The Honorable Adam Smith, Chairperson
Page 2—HB 2387
The Department of Revenue estimates that HB 2387 would decrease State General Fund
revenues by $350,000 in FY 2027 and in future fiscal years. Eligible donations totaling $700,000
to the Friends of Cedar Crest Foundation would allow taxpayers to claim $350,000 in tax credits,
which is the maximum amount of tax credits that could be claimed in tax year 2026 or FY 2027.
Individual income taxpayers would still only be allowed to claim up to $25,000 per tax year, and
corporation income and privilege taxpayers would only be able to claim $50,000 per tax year. The
total amount of the tax credit is still capped at $350,000 for any fiscal year and any unused tax
credits would not be allowed to be carried forward into future tax years. The Department indicates
the bill would have no fiscal effect on its operations. Any fiscal effect associated with HB 2387
is not reflected in The FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue