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.
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.
Department of Education
900 SW Jackson
Topeka, KS 66612
The credit is equal to 70% of the contribution made to a scholarship granting organization during the taxable year.
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 a copy of this credit schedule at a later date to claim the tax credit for 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 the credit schedule at a later date. 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
An eligible student is a child who is an at-risk student, as defined below, who is attending a public school or has been eligible to receive an educational scholarship under this program and has not graduated from high school or reached 21 years of age. Eligible students will be required to reside in Kansas while receiving an educational scholarship and be enrolled in any public school in the previous school year prior to receiving the scholarship or 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.
An at-risk student means a student who is eligible for free meals under the national school lunch act, and who is enrolled in a school district that maintains an approved at-risk student assistance program. An at-risk student shall not include any student enrolled in any of the grades one through 12 who is in attendance less than full time, or any student who is over 19 years of age. The provisions of this paragraph shall not apply to any student who has an individualized education program.
A “public school” is a school that would qualify as either a Title I focus school or a Title I priority school as described by the state board under the elementary and secondary education act flexibility waiver as amended in January 2013, and is operated by a school district. On or after July 1, 2018, a public school shall be a school that is operated by a school district, and identified by the state board as one of the lowest 100 performing schools with respect to student achievement among all schools operated by school districts for the current school year.
A “qualified school” is any nonpublic school that provides education to elementary and secondary students, has notified the state board of its intention to participate in the program and complies with the requirements of the program. On and after July 1, 2020, a qualified school shall be 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.
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 students attending qualified schools of their parents’ choice.