Electing to participate in the federal tax credit for individual contributions to scholarship granting organizations and increasing the aggregate tax credit limit on the tax credit for low income students scholarship program.

SB 386 allows Kansas taxpayers to claim a state tax credit for donations to scholarship-granting organizations that serve low-income students. It increases the credit rate from 70% to 75% of contributions for tax years after 2022 and raises the annual spending cap from $10 million to $20 million (with a potential maximum of $30 million). The bill also establishes a mechanism to automatically increase the cap by 25% if 75% of the current cap is reached in a given year. This directly affects donors - such as businesses, banks, and individuals - who contribute to eligible scholarship organizations in Kansas.