Pregnancy Resource Act Tax Credit
CORPORATE INCOME, PRIVILEGE, AND INSURANCE PREMIUM TAXPAYER-Effective for all taxable years beginning after December 31, 2023.
Qualifications
A taxpayer must contribute to an eligible charitable organization. An application must be completed by each organization that wishes to participate in the tax credit program that allows for donations to pregnancy centers or residential maternity care facilities. To be designated as an eligible charitable 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 and other information as required by the Department of Revenue.
You may complete the Kansas Department of Revenue application for designation as an approved Eligible Charitable Organization. To apply, click here to go to the Customer Service Center.
If you already have an account set up, enter your email address and password. If you are not registered, click “Register Now” at the bottom of the screen, and follow instructions.
Once you are signed in, click “Click Here” next to “To Add a Tax Credit”.
Click on “Apply to be a Pregnancy Resource Organization.”
Enter the required information and upload a copy of your 501(c)(3) and your organization’s certified copy of articles of incorporation as provided by the Kansas Secretary of State.
Click “Submit”. Once submitted, Kansas Department of Revenue will review the application and do one of the following: Approve, deny, or request information.
Once you are approved, a certificate will be generated and available for viewing and printing.
The following organizations have been approved as Eligible Charitable Organizations for purposes of the Pregnancy Resource Act tax credit:
- Embrace of Wichita Inc.
- Hope Women's Center
- Insight Women's Center
- JC Pregnancy Center
Credit Amount
The credit is equal to 70% of the contribution made to an eligible charitable organization during the taxable year for tax years beginning after December 31, 2023.
The credit will be claimed and deducted from the taxpayer’s tax liability during the tax year in which the contribution was made.
Prior to claiming a tax credit on the tax return, a taxpayer shall apply for a tax credit by completing, signing, and dating this form and submitting to the eligible charitable organization with the contribution. The eligible charitable organization will then sign, date, and submit the completed application to the Kansas Department of Revenue through the web application specifically designed for this tax credit program.
Limitation of Credit
If the amount of credit exceeds the taxpayer’s tax liability in the taxable year the contribution was made the taxpayer may carryover the amount that exceeds the tax liability for deduction from the taxpayer’s liability in the next succeeding year or years until the total amount of the tax credit has been deducted from the tax liability, except no such tax credit shall be carried over for deduction after the fifth tax year succeeding the tax year in which the contribution was made.
Total contributions cannot exceed $5,000,000 per eligible charitable organization for any one tax year. The total amount of credits allowed under this program shall not exceed $10,000,000 for any one tax year.
Procedures to Claim the Credit
A credit schedule will be available December 2024. 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 the schedule. 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.
Additional information regarding the Pregnancy Resource Act can be found in Notice 24-14, Pregnancy Resource Act Tax Credit and Exemption.
Pregnancy Resource Act Definitions
Eligible Charitable Organization
"Eligible charitable organization" means an organization that is:
- Exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986.
- a nonprofit organization organized under the laws of this state; and
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- a member of an organization whose members are pregnancy centers or residential maternity care facilities based in the state; or
- a pregnancy center or residential maternity facility that:
- Maintains a dedicated phone number for clients.
- maintains in this state its primary physical office, clinic or residential home that is open for clients for a minimum of 20 hours a week, excluding state holidays.
- offers services, at no cost to the client, for the express purpose of providing assistance to women in order to carry their pregnancy to term, encourage parenting or adoption, prevent abortion and promote healthy childbirth; and
- utilizes trained healthcare providers to perform any available medical procedures.
Healthcare Provider
"Healthcare provider" means an individual licensed, registered or certified by the:
- State board of healing arts.
- board of nursing; or
- behavioral sciences regulatory board.