CREATE OPPORTUNITY FOR KANSAS KIDS

Tax Credit for Low Income Students Scholarship Program

What is the Tax Credit for Low Income Students Scholarship program?

Do you pay Kansas income tax? Did you know that a portion of your tax liability could be donated to an approved Scholarship Granting Organization (SGO)?

The Tax Credit for Low Income Students Scholarship program allows both companies and individual taxpayers the opportunity to fund scholarships for underprivileged K-12 schoolchildren attending qualifying schools. Taxpayers are able to donate against their Kansas income tax liability to an approved SGO for a state tax credit equal to 70% of the contribution.

Benefits to taxpayers

Contributors that are eligible to make contributions to a designated SGO include individuals, C corporations, taxpayers filing a privilege tax return and companies filing an insurance premium tax statement.

A taxpayer is eligible to contribute up to $500,000 in total to SGOs during each tax year for a credit equal to 70% of the contribution.

If the amount of credit exceeds the contributor’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used.

The state of Kansas has a maximum of $10 million in available credits.

Benefits to children and families

All students should have access to an education that allows them to develop their unique talents and acquire the knowledge, skills and values necessary to be successful and find fulfillment in their lives.

By supporting SGOs, you are directly helping Kansas children receive educational opportunities they would not otherwise receive.

Next Steps

To learn more about the tax credit opportunity, you can contact an SGO listed below or your tax professional.

Success for Kansas Students
Christian Faith Centre
Catholic Education Foundation(NE Kansas)
Support for Catholic Schools(Wichita/SC Kansas)
ACE Scholarships
ReNewanation

For a complete list of participating SGOs and schools visit ksde.org/tax-credit-for-low-income-students-scholarship-program.

STUDENT AND SCHOOL REQUIREMENTS

The following eligibility requirements govern the Tax Credit for Low Income Student Scholarship Program:

Students eligible to receive the scholarship must be defined as at-risk by the state of Kansas. This means they must be part of the federal free lunch program with a household income of less than 130% of the federal poverty level.

Students must qualify as at-risk and attend one of the 100 lowest-performing qualified schools as defined by the No Child Left Behind (NCLB) waiver from the Kansas Department of Education to the federal government.

Schools receiving students with a tax credit scholarship must provide education to elementary and secondary students, notify the state board of its intention to participate in the program and comply with the requirements of the program.

Q & A

  • Why should we invest in K-12 education?

    All students should have access to an education that allows them to develop their unique talents and acquire the knowledge, skills and values necessary to be successful and find fulfillment in their lives. By contributing to an SGO, you are directly helping Kansas children receive educational opportunities they would otherwise not receive.

  • What are the tax liability benefits by contributing to an SGO?

    Any taxpayer with an income tax liability can contribute to an SGO, including individuals, C corporations, taxpayers filing a privilege tax return and companies filing an insurance premium tax statement.

  • How does the process work and the taxpayer receive appropriate credit?

    Upon receipt of a contribution, SGOs register the contribution and taxpayer information with the Kansas Dept. of Revenue and a tax certificate is created. The taxpayer will keep this certificate for their records and for use in filing their state taxes. Contact your tax professional for details about this tax credit opportunity.

  • Can I contact an SGO directly or do I have to go through a tax professional?

    You can contact an SGO directly. Each SGO serves a different group of private schools so it’s important to find the one that best meets your giving goals. Visit ksde.org/tax-credit-for-low-income-students-scholarship-program for a list of the more than 85 participating schools in Kansas.