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Panel opts Kansas into federal scholarship tax credit and raises state cap to $20 million
Summary
The committee voted to opt Kansas into a federal individual-tax credit for contributions to scholarship-granting organizations, raising the state's aggregate annual cap from $10 million to $20 million (with a mechanism to grow the cap) and adding reporting and rule limitations; members debated religious affiliation of participating schools and whether the credits touch state funds.
The Committee on Education adopted amendments and voted to pass House Bill 24-68, a bill that would allow Kansas to opt into a federal tax-credit program giving individual taxpayers up to $1,700 per taxpayer in federal credit for contributions to qualifying scholarship-granting organizations (SGOs) and would increase the state's annual aggregate cap on tax credits from $10 million to $20 million with a statutory mechanism to grow the cap in later years.
Jason, the committee reviser, summarized the bill: the opt-in (section 1) would permit Kansas taxpayers to receive a federal credit for qualifying contributions; section 2 would amend the states low-income student scholarship program statute (described in committee as 72-43-57) to raise the annual aggregate limit from $10,000,000 to $20,000,000 and, if claimed credits exceed 75% of the cap in a tax year, allow the cap to increase by 25% in subsequent years (with a potential maximum noted in committee discussion of $30,000,000 in a future year).
Committee members pressed staff on fiscal and operational questions. Representative Hubert noted the program's success and supported passage; Representative Featherston and others raised concerns that the bulk of participating schools are parochial and asked whether expanding credits would effectively divert resources away from public education. Representative Boatman said roughly 130 schools participate and estimated only about three are nonreligious; he cited roughly $58 million in contributions from 2020 to 2025 as context for concerns about where funds have been directed.
Jason clarified that the program's mechanics mean the contributions do not flow through the state treasury: "The monies do not touch the state treasury," he said, characterizing the program as foregone revenue rather than direct expenditures. The committee also discussed compliance: the state treasurer would provide a list of Kansas SGOs that meet federal requirements for verification.
The committee adopted several technical amendments, including one to clarify reporting of the aggregate cap between fiscal-year and school-year reporting and one to restrict state agencies from promulgating rules more stringent than applicable federal law in implementing section 1. Representative Featherston offered an amendment requiring schools that receive SGO funds to accept every student; that amendment failed on a recorded voice vote. Another amendment conditioning expansion on full funding for special education was ruled not germane to the bill by the chair because the funding issue resides in another committee.
Madam Chair called the question and the bill as amended passed in committee (the transcript records the ayes prevailing; several members asked to have their votes recorded). The bill now heads to the House floor as passed by the Committee on Education.
