Kansas 2025-2026 Regular Session

Kansas House Bill HB2208

Introduced
2/3/25  

Caption

Establishing the endow Kansas tax credit act to provide tax credits for endowment gifts to certain endowment funds held by qualified community foundations.

Impact

The act aims to encourage charitable giving to community foundations, which play a critical role in local philanthropy and support various community needs. By offering a significant tax incentive, it is expected to motivate individuals and corporations to contribute to permanent endowment funds, thereby providing a sustained financial resource for nonprofit organizations in Kansas. The act could enhance funding for various charitable initiatives, including education, health, and local development efforts.

Summary

House Bill 2208, known as the Endow Kansas Tax Credit Act, introduces a tax credit for taxpayers making endowment gifts to qualified community foundations. Effective for taxable years beginning after December 31, 2025, it allows a credit equal to 70% of the endowment gift amount, with a minimum contribution of $500 required to qualify. The bill sets an aggregate limit on total credits allowable per tax year, starting from $3 million in 2026 and gradually increasing to $5 million by 2028 and beyond. Additionally, the bill stipulates that no single community foundation can receive more than 10% of the total available credits in a given tax year.

Contention

During discussions around the bill, some members expressed concerns regarding the potential overreliance on tax incentives for charitable giving. Critics worry that if the fiscal implications of the tax credits were not properly assessed, it could lead to a depletion of state revenue, affecting the funding of essential public services. Additionally, there were debates about the eligibility criteria for community foundations, ensuring robust standards to maintain the integrity of the program. Overall support for the bill hinges on the belief that it will foster a beneficial environment for philanthropy without undermining state financial responsibilities.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2170

Senate Substitute for HB 2170 by Committee on Federal and State Affairs - Creating the donor intent protection act to provide enforcement of donor-imposed restrictions on philanthropic gifts of endowment funds or to endowment funds.

KS SB546

Decreasing the corporate income tax rate, discontinuing tax credits of the high performance incentive program and payroll withholding tax benefits of the promoting employment across Kansas act and repealing certain unused tax credits.

KS HB2797

Providing for full transferability of tax credits for investments in certain qualified business facilities.

KS HB2097

Enacting the Kansas film and digital media industry production development act, providing a tax credit, sales tax exemption and loans and grants to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas, requiring the secretary of commerce to issue reports on the economic impact, providing sales tax exemptions for purchases by a certain community theaters and purchases and sales made by the friends of cedar crest association and establishing an income, privilege and premium tax credit for employers that employ members of the Kansas army and air national guard and establishing an income tax credit for employees that are members thereof.

KS HB2832

Providing for transferability of Kansas housing investor tax credits from the year that the credit was issued.

KS HB2201

Senate Substitute for HB 2201 by Committee on Assessment and Taxation - Decreasing the corporate income tax rate and eliminating certain unused tax credits.

KS HB2036

Senate Substitute for HB 2036 by Committee on Assessment and Taxation - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, 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, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.

KS SB133

Providing for the enforcement of donor-imposed restrictions on philanthropic gifts of endowment funds or property to charitable organizations.

KS HB2764

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.

KS SB37

House Substitute for SB 37 by Committee on Financial Institutions and Pensions - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, 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, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.

Similar Bills

No similar bills found.