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Kansas Senate Bill SB252

Kansas 2025-2026 Regular Session

Kansas Senate Bill SB252 Compare Versions

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11 Session of 2025
22 SENATE BILL No. 252
33 By Committee on Assessment and Taxation
44 2-7
55 AN ACT concerning education; relating to the low income students
66 scholarship program act; expanding eligibility for scholarships to
77 certain high school students and students eligible to be enrolled in
88 certain school districts; increasing the tax credit for contributions made
99 pursuant to such act and the aggregate tax credit limit; providing for
1010 aggregate tax credit limit increases under certain conditions; providing
1111 for program administration by the state treasurer; amending K.S.A. 72-
1212 4351, 72-4353, 72-4355 and 72-4356 and K.S.A. 2024 Supp. 72-4352,
1313 72-4354 and 72-4357 and repealing the existing sections.
1414 Be it enacted by the Legislature of the State of Kansas:
1515 Section 1. K.S.A. 72-4351 is hereby amended to read as follows: 72-
1616 4351. The provisions of K.S.A. 72-4351 through 72-4357, and
1717 amendments thereto, shall be known and may be cited as the tax credit for
1818 low income Kansas K-12 students scholarship program act.
1919 Sec. 2. K.S.A. 2024 Supp. 72-4352 is hereby amended to read as
2020 follows: 72-4352. As used in the tax credit for low income Kansas K-12
2121 students scholarship program act:
2222 (a) "Contributions" means monetary gifts or donations and in-kind
2323 contributions, gifts or donations that have an established market value.
2424 (b) "Department" means the Kansas department of revenue.
2525 (c) "Educational scholarship" means an amount not to exceed $8,000
2626 per school year provided to an eligible student, or to a qualified school
2727 with respect to an eligible student, to cover all or a portion of the costs of
2828 education including tuition, fees and expenses of a qualified school and, if
2929 applicable, the costs of transportation to a qualified school if provided by
3030 such qualified school.
3131 (d) "Eligible student" means a child who:
3232 (1) Resides in Kansas; and
3333 (2) (A) (i) Has an annual family income that is less than or equal to
3434 250% of the federal poverty guidelines as determined annually in the
3535 federal register by the United States department of health and human
3636 services under 42 U.S.C. § 9902(2); and
3737 (ii) (a) was enrolled in kindergarten or any of the grades one through
3838 eight 11 in any public school in the previous school year in which an
3939 educational scholarship is first sought for the child; or
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7676 (b) is eligible to be enrolled in any public school in the school year in
7777 which an educational scholarship is first sought for the child and the child
7878 is seven years of age or under; or
7979 (B) (i) is eligible to be enrolled in a public school in the school year
8080 in which an educational scholarship is first sought for the child; and
8181 (ii) such public school is operated by a school district that for the
8282 immediately preceding school year had less than 50% of the students
8383 enrolled in such district who were administered the statewide assessments
8484 in mathematics, English language arts and science achieve a score in such
8585 assessments that was in either of the two highest achievement levels as
8686 established by the state board of education for the 2024-2025 school year,
8787 except that in the event the state board of education alters or changes the
8888 scoring method or achievement levels in any way from the methods or
8989 parameters used for the 2024-2025 school year, the provisions of this
9090 clause shall expire and no longer be required for the eligibility of a child
9191 under subparagraph (B); or
9292 (C) has received an educational scholarship under the program and
9393 has not graduated from high school or reached the age of 21 years.
9494 (e) "Parent" includes a guardian, custodian or other person with
9595 authority to act on behalf of the child.
9696 (f) "Program" means the tax credit for low income Kansas K-12
9797 students scholarship program established in K.S.A. 72-4351 through 72-
9898 4357, and amendments thereto.
9999 (g) "Public school" means any school operated by a unified school
100100 district under the laws of this state.
101101 (h) "Qualified school" means any nonpublic school that:
102102 (1) Provides education to elementary or secondary students;
103103 (2) is accredited by the state board or a national or regional
104104 accrediting agency that is recognized by the state board for the purpose of
105105 satisfying the teaching performance assessment for professional licensure
106106 or is working in good faith toward such accreditation;
107107 (3) has notified the state board and state treasurer of its intention to
108108 participate in the program; and
109109 (4) complies with the requirements of the program.
110110 (i) "Scholarship granting organization" means an organization that
111111 complies with the requirements of this program and provides educational
112112 scholarships to eligible students or to qualified schools in which parents
113113 have enrolled eligible students.
114114 (j) "School district" or "district" means any unified school district
115115 organized and operating under the laws of this state.
116116 (k) "School year" means the same as in K.S.A. 72-5132, and
117117 amendments thereto.
118118 (l) "Secretary" means the secretary of revenue.
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162162 (m) "State board" means the state board of education.
163163 Sec. 3. K.S.A. 72-4353 is hereby amended to read as follows: 72-
164164 4353. (a) There is hereby established the tax credit for low income Kansas
165165 K-12 students scholarship program. The program shall provide eligible
166166 students with an opportunity to attend schools of their parents' choice.
167167 (b) Each scholarship granting organization shall issue a receipt, in a
168168 form prescribed by the secretary, to each contributing taxpayer indicating
169169 the value of the contribution received. Each taxpayer shall provide a copy
170170 of such receipt when claiming the tax credit established in K.S.A. 72-4357,
171171 and amendments thereto.
172172 (c) Prior to awarding an educational scholarship with respect to an
173173 eligible student, unless such student is under the age of six years, the
174174 scholarship granting organization shall receive written verification from
175175 the state board treasurer that such student is an eligible student under this
176176 program, provided the state board treasurer and the board of education of
177177 the school district in which the eligible student was enrolled the previous
178178 school year, if applicable, have received written consent from such eligible
179179 student's parent authorizing the release of such information.
180180 (d) Upon receipt of information in accordance with K.S.A. 72-
181181 4354(a)(2), and amendments thereto, the state board treasurer shall inform
182182 the scholarship granting organization whether an educational scholarship
183183 has been awarded by another scholarship granting organization with
184184 respect to the eligible student.
185185 (e) In each school year, no more than $8,000 in educational
186186 scholarships may be awarded under this program with respect to an
187187 eligible student.
188188 (f) The state treasurer may have nonexclusive authority to market the
189189 Kansas K-12 students scholarship program throughout the state and may
190190 report on the initiatives in the state treasurer's office annual report.
191191 Sec. 4. K.S.A. 2024 Supp. 72-4354 is hereby amended to read as
192192 follows: 72-4354. (a) To be eligible to participate in the program, a
193193 scholarship granting organization shall comply with the following:
194194 (1) The scholarship granting organization shall notify the secretary
195195 and the state board treasurer of the scholarship granting organization's
196196 intent to provide educational scholarships;
197197 (2) upon granting an educational scholarship, the scholarship granting
198198 organization shall report such information to the state board treasurer;
199199 (3) the scholarship granting organization shall provide verification to
200200 the secretary that the scholarship granting organization is exempt from
201201 federal income taxation pursuant to section 501(c)(3) of the federal
202202 internal revenue code of 1986;
203203 (4) upon receipt of contributions in an aggregate amount or value in
204204 excess of $50,000 during a school year, a scholarship granting
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248248 organization shall file with the state board treasurer either:
249249 (A) A surety bond payable to the state in an amount equal to the
250250 aggregate amount of contributions expected to be received during the
251251 school year; or
252252 (B) financial information demonstrating the scholarship granting
253253 organization's ability to pay an aggregate amount equal to the amount of
254254 the contributions expected to be received during the school year, which
255255 that must be reviewed and approved of in writing by the state board
256256 treasurer;
257257 (5) scholarship granting organizations that provide other nonprofit
258258 services in addition to providing educational scholarships shall not
259259 commingle contributions made under the program with other contributions
260260 made to such organization. A scholarship granting organization under this
261261 subsection shall also file with the state board treasurer, prior to the
262262 commencement of each school year, either:
263263 (A) A surety bond payable to the state in an amount equal to the
264264 aggregate amount of contributions expected to be received during the
265265 school year; or
266266 (B) financial information demonstrating the nonprofit organization's
267267 ability to pay an aggregate amount equal to the amount of the
268268 contributions expected to be received during the school year, which that
269269 must be reviewed and approved of in writing by the state board treasurer;
270270 (6) each qualified school receiving educational scholarships from the
271271 scholarship granting organization shall annually certify to the scholarship
272272 granting organization its compliance with the requirements of the program;
273273 (7) at the end of the calendar year, the scholarship granting
274274 organization shall have its accounts examined and audited by a certified
275275 public accountant. Such audit shall include, but not be limited to,
276276 information verifying that the educational scholarships awarded by the
277277 scholarship granting organization were distributed to qualified schools
278278 with respect to eligible students determined by the state board treasurer
279279 under K.S.A. 72-4353(c), and amendments thereto, and information
280280 specified in this section. Prior to filing a copy of the audit with the state
281281 board treasurer, such audit shall be duly verified and certified by a
282282 certified public accountant; and
283283 (8) if a scholarship granting organization decides to limit the number
284284 or type of qualified schools who will receive educational scholarships, the
285285 scholarship granting organization shall provide, in writing, the name or
286286 names of those qualified schools to any contributor and the state board
287287 treasurer.
288288 (b) No scholarship granting organization shall provide an educational
289289 scholarship with respect to any eligible student to attend any qualified
290290 school with paid staff or paid board members, or relatives thereof, in
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334334 common with the scholarship granting organization.
335335 (c) The scholarship granting organization shall disburse not less than
336336 90% of contributions received pursuant to the program in the form of
337337 educational scholarships within 36 months of receipt of such contributions.
338338 If such contributions have not been disbursed within the applicable 36-
339339 month time period, then the scholarship granting organization shall not
340340 accept new contributions until 90% of the received contributions have
341341 been disbursed in the form of educational scholarships. Any income earned
342342 from contributions must be disbursed in the form of educational
343343 scholarships.
344344 (d) A scholarship granting organization may continue to provide an
345345 educational scholarship with respect to a student who was an eligible
346346 student in the year immediately preceding the current school year.
347347 (e) A scholarship granting organization shall direct payments of
348348 educational scholarships to the qualified school attended by the eligible
349349 student or in which the eligible student is enrolled. Payment may be made
350350 by check made payable to both the parent and the qualified school or to
351351 only the qualified school. If an eligible student transfers to a new qualified
352352 school during a school year, the scholarship granting organization shall
353353 direct payment in a prorated amount to the original qualified school and
354354 the new qualified school based on the eligible student's attendance. If the
355355 eligible student transfers to a public school and enrolls in such public
356356 school after September 20 of the current school year, the scholarship
357357 granting organization shall direct payment in a prorated amount to the
358358 original qualified school and the public school based on the eligible
359359 student's attendance. The prorated amount to the public school shall be
360360 considered a donation and shall be paid to the school district of such public
361361 school in accordance with K.S.A. 72-1142, and amendments thereto.
362362 (f) Each qualified school shall provide a link to the state department
363363 of education's webpage where the reports prepared pursuant to K.S.A. 72-
364364 5170, and amendments thereto, and K.S.A. 2024 Supp. 72-5178, and
365365 amendments thereto, for such school are published. The link shall be
366366 prominently displayed on the school's accountability reports webpage.
367367 (g) By June 1 of each year, a scholarship granting organization shall
368368 submit a report to the state board treasurer for the educational scholarships
369369 provided in the immediately preceding 12 months. Such report shall be in
370370 a form and manner as prescribed by the state board treasurer, approved
371371 and signed by a certified public accountant, and shall contain the following
372372 information:
373373 (1) The name and address of the scholarship granting organization;
374374 (2) the name and address of each eligible student with respect to
375375 whom an educational scholarship was awarded by the scholarship granting
376376 organization;
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420420 (3) the total number and total dollar amount of contributions received
421421 during the 12-month reporting period; and
422422 (4) the total number and total dollar amount of educational
423423 scholarships awarded during the 12-month reporting period and the total
424424 number and total dollar amount of educational scholarships awarded
425425 during the 12-month reporting period with respect to eligible students who
426426 qualified under K.S.A. 72-4352(d), and amendments thereto.
427427 (h) No scholarship granting organization shall:
428428 (1) Provide an educational scholarship with respect to an eligible
429429 student that is established by funding from any contributions made by any
430430 relative of such eligible student; or
431431 (2) accept a contribution from any source with the express or implied
432432 condition that such contribution be directed toward an educational
433433 scholarship for a particular eligible student.
434434 Sec. 5. K.S.A. 72-4355 is hereby amended to read as follows: 72-
435435 4355. (a) On or before the first day of the legislative session in 2026, the
436436 state board and the state treasurer shall jointly prepare and submit a
437437 report to the legislature on the program. On or before the first day of the
438438 legislative session in 2015 2027, and each year thereafter, the state board
439439 treasurer shall prepare and submit a report to the legislature on the
440440 program. Annual reports shall include information reported to the state
441441 board or the state treasurer under subsection (f) of K.S.A. 72-4354(g), and
442442 amendments thereto, and a summary of such information.
443443 (b) On July 1, 2025, or as soon as practicable thereafter, the state
444444 board shall provide a copy of all reports and records relating to the
445445 program to the state treasurer.
446446 Sec. 6. K.S.A. 72-4356 is hereby amended to read as follows: 72-
447447 4356. (a) (1) To qualify for the tax credit allowed by this act, the
448448 scholarship granting organization shall apply each tax year to the state
449449 board treasurer for a certification that the scholarship granting
450450 organization is in substantial compliance with the program based on
451451 information received in the annual audit and yearly report filed by the
452452 scholarship granting organization with the state board treasurer.
453453 (2) The state board treasurer shall prescribe the form of the
454454 application, which that shall include, but not be limited to, the information
455455 set forth in subsection (a)(1).
456456 (b) If the state board treasurer determines that the requirements under
457457 this section were met by the scholarship granting organization, the state
458458 board treasurer shall issue a certificate of compliance to the director of
459459 taxation. Any scholarship granting organization that applied for and
460460 received a certificate of compliance for tax year 2025 from the state board
461461 prior to July 1, 2025, shall not be required to reapply to the state treasurer
462462 for tax year 2025.
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506506 (c) The state board treasurer shall adopt rules and regulations to
507507 implement the provisions of this section.
508508 Sec. 7. K.S.A. 2024 Supp. 72-4357 is hereby amended to read as
509509 follows: 72-4357. (a) (1) There shall be allowed a credit against the
510510 corporate income tax liability imposed upon a taxpayer pursuant to the
511511 Kansas income tax act, the privilege tax liability imposed upon a taxpayer
512512 pursuant to the privilege tax imposed upon any national banking
513513 association, state bank, trust company or savings and loan association
514514 pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and
515515 amendments thereto, and the premium tax liability imposed upon a
516516 taxpayer pursuant to the premiums tax and privilege fees imposed upon an
517517 insurance company pursuant to K.S.A. 40-252, and amendments thereto,
518518 for tax years commencing after December 31, 2014, and ending before
519519 January 1, 2017, an amount equal to 70% of the amount contributed to a
520520 scholarship granting organization authorized pursuant to K.S.A. 72-4351
521521 et seq., and amendments thereto.
522522 (2) There shall be allowed a credit against the tax liability imposed
523523 upon a taxpayer pursuant to the Kansas income tax act, the privilege tax
524524 liability imposed upon a taxpayer pursuant to the privilege tax imposed
525525 upon any national banking association, state bank, trust company or
526526 savings and loan association pursuant to article 11 of chapter 79 of the
527527 Kansas Statutes Annotated, and amendments thereto, and the premium tax
528528 liability imposed upon a taxpayer pursuant to the premiums tax and
529529 privilege fees imposed upon an insurance company pursuant to K.S.A. 40-
530530 252, and amendments thereto:
531531 (A) For tax years commencing after December 31, 2016, and ending
532532 before January 1, 2022 2023, an amount equal to 70% of the amount
533533 contributed to a scholarship granting organization authorized pursuant to
534534 K.S.A. 72-4351 et seq., and amendments thereto; and
535535 (B) for tax years commencing after December 31, 2022, and ending
536536 before January 1, 2025, an amount equal to 75% of the amount
537537 contributed to a scholarship granting organization authorized pursuant to
538538 K.S.A. 72-4351 et seq., and amendments thereto; and
539539 (C) for tax years commencing after December 31, 2024, an amount
540540 equal to 100% of the amount contributed to a scholarship granting
541541 organization authorized pursuant to K.S.A. 72-4351 et seq., and
542542 amendments thereto.
543543 (3)(2) In no event shall the total amount of contributions for any
544544 taxpayer allowed under this subsection exceed $500,000 for any tax year.
545545 (b) The credit shall be claimed and deducted from the taxpayer's tax
546546 liability during the tax year in which the contribution was made to any
547547 such scholarship granting organization.
548548 (c) (1) Except as otherwise provided in this subsection, for tax year
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592592 2025, and each tax year thereafter, in no event shall the total amount of
593593 credits allowed under this section shall not exceed $10,000,000
594594 $20,000,000 for any one tax year.
595595 (2) In each tax year commencing after December 31, 2024, the
596596 secretary shall determine whether the total amount of credits claimed
597597 pursuant to this subsection exceeds 75% of the aggregate credit limit
598598 established pursuant to this subsection. If such condition is satisfied, the
599599 aggregate credit limit shall be increased by 25% for the succeeding tax
600600 year.
601601 (3) Except as otherwise provided, the allocation of such tax credits
602602 for each scholarship granting organization shall be determined by the
603603 scholarship granting organization in consultation with the secretary, and
604604 such determination shall be completed prior to the issuance of any tax
605605 credits pursuant to this section.
606606 (d) If the amount of any such tax credit claimed by a taxpayer
607607 exceeds the taxpayer's income, privilege or premium tax liability, such
608608 excess amount may be carried over for deduction from the taxpayer's
609609 income, privilege or premium tax liability in the next succeeding year or
610610 years until the total amount of the credit has been deducted from tax
611611 liability.
612612 (e) The secretary shall adopt rules and regulations regarding filing of
613613 documents that support the amount of credit claimed pursuant to this
614614 section.
615615 Sec. 8. K.S.A. 72-4351, 72-4353, 72-4355 and 72-4356 and K.S.A.
616616 2024 Supp. 72-4352, 72-4354 and 72-4357 are hereby repealed.
617617 Sec. 9. This act shall take effect and be in force from and after its
618618 publication in the statute book.
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