Bill > HB2078

This bill introduces a new income tax credit in Kansas for contributions made to child care providers or intermediary nonprofit organizations. Starting in the 2026 tax year, taxpayers can receive a tax credit equal to 75% of their verified contributions, with a maximum credit of $200,000 per taxpayer and a statewide annual cap of $20,000,000. To qualify, contributions must be used to support child care for children 12 years old or younger, such as improving facilities, paying staff, or enhancing services. Child care providers and intermediary organizations must apply to the Kansas Department of Revenue and follow specific verification procedures, including filing documentation within 60 days of receiving a contribution. The contribution cannot be made to an organization where the taxpayer has a direct financial interest, and intermediaries must distribute funds to child care providers within two years. An intermediary that misuses funds will be required to repay the tax credit value, and permanently lose eligibility to participate in the program. Unused tax credits can be carried forward for up to six subsequent tax years, providing flexibility for taxpayers who may not fully utilize the credit in a single year.

Budget and Finance

Taxation (H)

https://kslegislature.gov/li/b2025_26/measures/hb2078/