Low Income Students Scholarship
CORPORATE INCOME, PRIVILEGE AND INSURANCE PREMIUM TAXPAYER-Effective for all taxable years beginning after December 31, 2014.
INCOME TAXPAYER-Effective for all taxable years beginning after December 31, 2016.
Qualifications
An eligible student may be able to qualify for an educational scholarship to pay all or a portion of tuition to attend a qualified school in Kansas. Contributions shall be made to a scholarship granting organization to provide educational scholarships to students attending qualified schools of their parents’ choice.
Contributions will be made to a scholarship granting organization who will in turn disburse not less than 90% of the contributions received to eligible students in the form of educational scholarships within 36 months of receipt. The scholarship may not exceed $8,000 per eligible student for each school year and shall cover all or a portion of the costs of tuition, fees, and expenses of a qualified school and if applicable, the costs of transportation to a qualified school if provided by the qualified school.
An application must be completed by each scholarship granting organization (SGO) that wishes to participate in the Tax Credit for Low Income Student Scholarship Program. In addition, the SGO must also complete an application provided by the Department of Education. To be designated as a scholarship granting organization for purposes of this program, the organization must provide verification that it is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code.
You may download the Kansas Department of Revenue application for designation as a scholarship granting organization.
You may download the Kansas Department of Education application for designation as a scholarship granting organization.
Department of Education
900 SW Jackson
Topeka, KS 66612
www.ksde.org
Credit Amount
The credit is equal to 70% of the contribution made to a scholarship granting organization during the taxable year for tax years beginning after December 31, 2014 and ending before January 1, 2023. For tax years beginning after December 31, 2022 the credit is equal to 75%.
The credit will be claimed and deducted from the taxpayer’s tax liability during the tax year in which the contribution was made.
Contributors that are eligible to make contributions to a designated scholarship granting organization include:
- For taxable years commencing after December 31, 2016, individuals filing an income tax return pursuant to the Kansas income tax act, and amendments thereto;
- C Corporations filing a corporate income tax return pursuant to the Kansas income tax act, and amendments thereto;
- Taxpayers filing a privilege tax return pursuant to K.S.A. 79-1105c et seq., and amendments thereto; and
- Companies filing an insurance premium tax statement pursuant to K.S.A. 40-252, and amendments thereto.
Limitation of Credit
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 total amount of credits allowed under this program shall not exceed $10 million for any one tax year. Total contributions cannot exceed $500,000 per contributor for any one tax year.
Procedures to Claim the Credit
You may download Schedule K-70 to claim the tax credit for the Low Income Students Scholarship. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-70. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.
Low Income Students Scholarship Definitions
Eligible Student
An eligible student means a child who:
(1) Resides in Kansas; and
(2)(A)(i) Has an annual family income that is less than or equal to 250% of the federal poverty guidelines as determined annually in the federal register by the United States department of health and human services under 42 U.S.C. § 9902(2); and
(2)(A)(ii) (a) was enrolled in kindergarten or any of the grades one through eight in any public school in the previous school year in which an educational scholarship is first sought for the child; or
(2)(A)(ii) (b) is eligible to be enrolled in any public school in the school year in which an educational scholarship is first sought for the child and the child is under the age of six years; or
(2)(B) has received an educational scholarship under the program and has not graduated from high school or reached the age of 21 years.
Public School
"Public school" means any school operated by a unified school district under the laws of this state.
Qualified School
A “qualified school” is any nonpublic school that provides education to elementary and secondary students, is accredited by the state board or a national or regional accrediting agency that is recognized by the state board for the purpose of satisfying the teaching performance assessment for professional licensure or is working in good faith toward such accreditaion, has notified the state board of its intention to participate in the program and complies with the requirements of the program.
Scholarship Granting Organization
A “scholarship granting organization” is defined as an organization that complies with the requirements of this program and provides educational scholarships to eligible students or to qualified schools in which parents have enrolled eligible students.