Kansas Tax Credit for Low Income Students Scholarship Program: A Donor's Guide

The Kansas scholarship tax credit in brief

Kansas created the Tax Credit for Low Income Students Scholarship Program in 2014. You give to an approved scholarship granting organization (SGO). The SGO gives scholarships to low-income students attending accredited private schools. You get a Kansas tax credit for part of the gift.

• Credit rate: 75% of your contribution. It was 70% through tax year 2022.
• Taxes it offsets: Kansas income tax, the privilege tax paid by banks and savings institutions, and the insurance premium tax.
• Per-taxpayer limit: only the first $500,000 you give in a year counts, so the most one taxpayer can earn is $375,000.
• Statewide cap: $10 million in credits per tax year. SGOs allocate the credits in consultation with the Secretary of Revenue.
• Carryover: if the credit exceeds your tax, the rest carries forward until it is used up.

Who can claim it

Individuals, corporations, banks and insurers that owe the covered Kansas taxes can claim the credit. Unlike the federal credit, Kansas also counts in-kind gifts that have an established market value. The SGO must give you a receipt in the form the Department of Revenue prescribes, and you include a copy when you claim the credit.

Amounts, caps and the 2026 fight over the cap

For its first decade, the program never filled its $10 million cap. That changed in 2025. The Sentinel reported in January 2026 that SGOs turned donors away once credits ran out, and one SGO said it turned away about 1,100 students for lack of funds.

The 2026 Legislature passed a bill that would have added $5 million to the cap. Governor Laura Kelly vetoed it, and the override vote fell eight votes short. As of October 2026, the cap remains $10 million. In practice, that makes timing matter: ask an SGO early in the year whether it still has allocation.

Preapproval and deadlines

Kansas doesn't run a public preapproval portal like Montana's or Georgia's. The statute leaves the allocation of credits among SGOs to the SGOs and the Secretary of Revenue, and the SGO tells you whether your gift will carry a credit. The credit is claimed for the tax year in which you give, so a gift on December 31, 2026 counts for 2026.

Stacking with the federal $1,700 credit

In April 2026, Kansas lawmakers overrode Governor Kelly's veto of a bill directing the state to take part in the federal scholarship tax credit, and Kansas is on the IRS list of states with 2027 advance elections. From January 1, 2027, an individual giving cash to an SGO on Kansas's federal list can claim up to $1,700. Married couples can claim up to $3,400 if each spouse gives. Our federal scholarship tax credit guide explains the rest.

Treasury's proposed rules subtract any state credit claimed on a qualified federal gift before applying the $1,700 cap. They also add an ordering rule: when you designate only part of a gift as qualified, the state credit counts first against the part you didn't designate. A 75% credit fits that rule well.

Option A, one gift to an organization on both lists. Single filer Dana gives $6,800 and designates $1,700 as a qualified contribution.

Option B, two gifts. Dana gives $5,000 to a Kansas SGO for a $3,750 state credit. Separately, she gives $1,700 to an SGO on a federal list, designates it as qualified and claims no Kansas credit on it, for a $1,700 federal credit.

Option A works only if the same organization is on both the Kansas program and Kansas's federal SGO list, and still has state allocation. Kansas must submit that federal list by February 15, 2027. See the states opted-in tracker. Business gifts never earn the federal credit, which goes only to individuals giving in their own name.

How to give, step by step

1. Find an approved Kansas SGO. The Kansas State Department of Education keeps the program page and list. ACE Scholarships is one SGO active in Kansas.
2. Ask about allocation. Confirm the SGO still has state credits for the year, and whether it plans to be on the federal list.
3. Give, and get the receipt. Keep the SGO's Department of Revenue receipt.
4. Claim it. Claim the 75% credit on your Kansas return and include the receipt.
5. From 2027, designate your federal portion. Tell the SGO in writing which part is a qualified contribution, and keep the unique donor number it must send by January 31. Our guide on how to claim the federal scholarship tax credit covers Form 8525.

Businesses comparing states can read business tax credit scholarships. Families should see Kansas scholarships for families.

Choosing an SGO

Look for:

• Clear published scholarship criteria and partner schools.
• Low overhead.
• Honest answers about waitlists.
• A plan for the federal program.

Kansas scholarships top out at $8,000 a year, so ask how large a typical award is. Our guide to choosing a scholarship fund has a full due-diligence checklist. When you're ready, pledge on Edulist. You give directly to the SGO; Edulist never takes donations.

This is general information as of October 2026, not tax advice. Federal rules are proposed, not final. Ask your tax professional.