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Senate committee narrows private-school tax credit, removes education-department review
Summary
The Kansas Senate Education Committee amended Senate Bill 75 to limit tax credits to documented tuition-related expenditures and to remove a provision allowing the Department of Revenue to consult with the State Department of Education. The bill passed out of committee as amended.
Senate Bill 75, which would expand state tax credits related to private school attendance, was amended and passed out of the Kansas Senate Education Committee on a voice vote after several members raised questions about verification and accountability.
The committee adopted an amendment from Senator Shane that changes the credit language so the award would be “an amount equal to the expenditures directly attributable to the cost of tuition and other related costs of attending the private institution,” with $8,000 and $4,000 remaining as maximum amounts. Revisor Tamara Lawrence summarized the amendment, saying, “as the bill is currently drafted, those tax credit would be for $8,000 or $4,000. What this balloon would do is it would be an amount equal to the expenditures directly attributable to the cost of tuition and other related costs of attending the private institution.”
Lawrence and Senator Shane told the committee that the measure does not create a separate proof process beyond typical tax documentation: the credit would be claimed on tax returns similar to a charitable contribution and “you would claim it on your taxes as you do a charitable contribution. Make sure you keep your documentation in case of an audit,” Lawrence said. Senator Petty asked how claims would be verified, noting some private schools receive in-kind support through churches; Senator Shane replied there would be no additional proof required beyond what is claimed on tax forms and indicated he has a related amendment to address verification.
A second amendment by Senator Shane struck language in the bill that would have allowed the Department of Revenue to consult with the State Board of Education. Senator Sykes warned that removing the Department of Education from that process could make it harder to determine whether expenditures were education-related, citing examples from other states where credits were abused. Senator Shane replied that fraudulent use would be subject to criminal prosecution.
The committee then voted to pass SB 75 out of committee as amended. Senator Shane moved the final motion and Senator Rose seconded. Several senators asked to be recorded as opposed: Senator Sykes, Senator Argebrite and Senator Petty asked to be noted as no on the record. Senator Sykes had earlier voiced opposition to the bill on equity grounds, saying the credit expands public support for private schooling and may not benefit low-income families as intended.
The amendments adopted: (1) limit the credit to actual tuition-related expenditures up to the statutory maximums, and (2) remove the clause allowing Department of Revenue consultation with the State Board of Education. Committee members discussed verification, audit procedures, and eligibility for homeschool families (homeschooling families remain eligible for up to $4,000 if they choose to claim it).
The committee’s action sends SB 75 to the next stage of the legislative process with the changes adopted in committee.
