Instructions For Schedule K-70 (Page 2 of 4) in pdf

and secondary education act flexibility waiver as amended in January 2013 and 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.

(h) “Qualified school” means any nonpublic school that provides education to

elementary or 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.

The scholarship program is financed through a tax credit in an amount equal to 70% of the amount

contributed for scholarships. Under prior law, the credit could be claimed against corporate

income, premium (insurance companies) or privilege (financial institutions) tax liability. Effective

for tax years commencing after December 31, 2016, the credit is also available to individual

income taxpayers. Contributions from individual income taxpayers can begin on July 1, 2017.

Also effective for tax years commencing after December 31, 2016, the total amount of

contributions for any taxpayer cannot exceed $500,000 for any tax year. The new language, which

amends K.S.A. 2016 Supp. 72-99a07(a) provides:

(a) (1) There shall be allowed a credit against the corporate income tax liability

imposed upon a taxpayer pursuant to the Kansas income tax act, the privilege tax

liability imposed upon a taxpayer pursuant to the privilege tax imposed upon any

national banking association, state bank, trust company or savings and loan association

pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments

thereto, and the premium tax liability imposed upon a taxpayer pursuant to the

premiums tax and privilege fees imposed upon an insurance company pursuant to

K.S.A. 40-252, and amendments thereto, for tax years commencing after December 31,

2014, and ending before January 1, 2017, an amount equal to 70% of the amount

contributed to a scholarship granting organization authorized pursuant to K.S.A. 2016

Supp. 72-99a01 et seq., and amendments thereto.

(2) There shall be allowed a credit against the tax liability imposed upon a

taxpayer pursuant to the Kansas income tax act, the privilege tax liability imposed upon

a taxpayer pursuant to the privilege tax imposed upon any national banking

association, state bank, trust company or savings and loan association pursuant to

article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto,

and the premium tax liability imposed upon a taxpayer pursuant to the premiums tax

and privilege fees imposed upon an insurance company pursuant to K.S.A. 40-252, and

amendments thereto, for tax years commencing after December 31, 2016, an amount

equal to 70% of the amount contributed to a scholarship granting organization

authorized pursuant to K.S.A. 2016 Supp. 72-99a01 et seq., and amendments thereto.

In no event shall the total amount of contributions for any taxpayer allowed under this

subsection exceed $500,000 for any tax year.

Instructions For Schedule K-70 Page 2