Higher Education Tax Credit Program

In an effort to help meet the needs of colleges and universities, the Kansas Department of Revenue & Kansas Legislature has established the Community College & Technical College Contribution Tax Credit Program (House Bill 2239), which offers tax credits for contributions designated for capital improvements, deferred maintenance or the purchase of technology or equipment.

The credit shall equal 60% of the total amount contributed during a taxable year, and tax credits are limited to $250,000 per taxpayer, per tax year.

Example: A taxpayer makes a $10,000 contribution to WSU Tech and receives a state tax credit in the amount of $6,000. The taxpayer may be eligible to deduct a maximum of $4,000 as a charitable donation on the federal return. The taxpayer would receive a $6,000 Kansas tax credit to be applied against their state tax liability.

The tax credit program runs from July 2022 through 2026, but since the credits are limited and on a first-come first-served basis and the statewide pool is limited, the earlier the donors provide the gift to the program the better. We encourage you to connect with your tax professional to see how this program could benefit you.

Read more at https://www.ksrevenue.gov/taxnotices/notice22-03.pdf and https://www.ksrevenue.gov/prtaxcredits-deferred.html.