Kansas bill proposed asset certificates and charity distributions for fiduciary firms

Fiduciary financial institutions may issue certificates for certain assets and trusts. The authority covers institutions managing alternative asset custody accounts or acting as trustees of trusts. Digital certificates may use systems that record ownership and transactions. The bill says it would take effect after publication in the statute book.

Institutions that engage in fiduciary finance transactions must distribute a required amount to the Department of Commerce and selected charities. This requirement applies to fiduciary financial institutions that engage in fiduciary finance transactions. The amount is 2.5% of transactions originated during the calendar year, excluding renewals, extensions, or accruals tied to earlier transactions, less any available credit specified by law. The Department of Commerce receives a share based on the amount and the institution's charter date; the institution selects charities to receive the balance. The calculation uses transactions originated during each calendar year.

Fiduciary financial institutions may claim a tax credit for qualifying charitable distributions. The credit covers qualifying distributions connected to an institution's fiduciary finance activities. The institution must keep its principal office in an economic growth zone during the tax year and file its tax return on time. A Kansas nonprofit corporation must meet the stated written-use and reporting requirements to qualify; other listed charity rules also apply. The credit applies to qualifying distributions made during the taxable year.