Brief(1)
S.B. 45 would amend K.S.A. 79-32,202 to enhance an adoption-expense income tax credit enacted originally in 1997. The alternative credit in subsection (b) for adoptions of children with special needs or children in the custody of the Secretary of Social and Rehabilitation Services would be increased from $1,500 to $3,000. The credit enhancement would be refundable as would any amount carried over from this credit since 1997. The enhanced credit would be effective for tax year 1999.
The bill would also provide a refundable income tax credit of up to $300 for individuals certified to instruct K-12 who purchase materials or equipment used to assist in the education of students. Additional credits would be allowed to individuals for certain education expenses (exclusive of tuition) on behalf of dependents attending an elementary or secondary school in Kansas. The amount of this latter credit would be 25 percent of the amounts paid for education expenses in excess of $250, but not more than $125 for all dependents in any taxable year.
Background
S.B. 45 was recommended as part of the Governor's tax package. The original bill also would have enhanced the federal piggyback credit in subsection (a).
The Senate Committee of the Whole amended the bill to make both credits refundable along with any carryover amounts from this credit since 1997.
The House Taxation Committee amended the bill to strike the proposed enhancement in subsection (a).
The House Committee of the Whole amended the bill to include the refundable income tax credits for individuals certified to instruct K-12 who purchase materials or equipment used to assist in the education of students and for individuals who incur certain education expenses on behalf of dependents attending an elementary or secondary school in Kansas.
The Department of Revenue estimates that the fiscal impact of this bill, as amended by the House Committee of the Whole, would be a reduction in state revenues of $16.55 million in FY 2000. Of this amount, $800,000 would be attributable to the enhanced adoption credits and $15.75 million is attributable to the credits for expenses incurred in the purchase of certain educational materials by qualified individuals.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.