Kansas taxpayers could claim credits for qualifying foundation gifts

Taxpayers could claim a credit equal to 70% of a qualifying gift. The gift must go to an unrestricted or field-of-interest permanent endowment fund held by a qualified Kansas community foundation. The gift must be irrevocable and at least $500. The foundation must be certified, and the Department of Revenue must allocate the credit before the taxpayer claims it. The total credits are capped at $3 million for tax year 2026, $4 million for 2027, and $5 million for 2028 and later years. No single foundation or affiliate may receive more than 10% of the yearly total. A taxpayer's credit is capped at $100,000 for an individual or fiduciary, and $200,000 for a joint return, corporation, or financial institution. Unused credit may carry forward for up to five succeeding tax years, but cannot be transferred. The credit would apply to tax years beginning after December 31, 2025. A gift must be made by the end of the tax year for which the credit is allocated.

The Department of Revenue would certify foundations and allocate credits to applicants. These procedures cover foundations seeking to participate and taxpayers seeking credits for gifts. Foundations must meet the bill's organizational and charitable requirements and remain in good standing with the department. Taxpayers must apply before claiming a credit and need written notice of the amount allocated. If the gift has not yet been made when a credit is allocated, it must be made within 30 days and by the end of that tax year, or the allocation is canceled. The department would allocate credits or notify applicants within 30 days after receiving an application it finds may qualify.