Is there a Kansas tax credit for contributions to the Eisenhower Foundation?

Plain-English summary

Kansas Notice 21-10 explains a new income or privilege tax credit for contributions to the Eisenhower Foundation, created by 2021 Senate Bill 47 (New Section 7).

The credit. For tax years 2021, 2022, 2023, 2024, and 2025, a taxpayer may claim a credit equal to 50% of the amount contributed to the Eisenhower Foundation. Under New Section 7, the credit is available to a taxpayer subject to income tax under K.S.A. 79-32,110(a) or (c) or to the privilege tax under K.S.A. 79-1107 and 79-1108.

Caps. The credit a taxpayer may claim in a year is limited to:

• $25,000 for a resident individual (income tax under K.S.A. 79-32,110(a)); or
• $50,000 for a corporation (K.S.A. 79-32,110(c)) or a financial institution paying privilege tax.

Nonresident individuals may not claim the credit. In addition, the aggregate amount of all credits allowed is limited to $350,000 for any fiscal year.

Nonrefundable, no carryover. The credit cannot exceed the tax due after all other credits have been allowed, and it reduces the taxpayer's liability only for the year the contribution is made. It is not refundable and cannot be carried over to another year. Claimants complete Schedule K-43 and file it with the Kansas income or privilege tax return.

This credit parallels the Friends of Cedar Crest Association credit created by New Section 8 of the same bill (see Notice 21-11), which works the same way but for contributions to that Association and is claimed on Schedule K-46.

What this means for you

Individuals and businesses that donate

• A contribution to the Eisenhower Foundation earns a credit worth 50% of the gift, up to $25,000 (resident individuals) or $50,000 (corporations/privilege taxpayers) per year.
• The credit is nonrefundable and cannot be carried forward, so it only helps up to your tax liability for the contribution year.

Nonresident individuals

• You cannot claim this credit, even if you contribute to the Foundation.

Corporations and financial institutions

• You can claim the credit against corporate income tax or the financial-institution privilege tax, subject to the $50,000 per-year and $350,000 aggregate caps.

Common questions

What is the credit worth? 50% of the amount contributed to the Eisenhower Foundation.

What are the caps? $25,000 per year for resident individuals, $50,000 for corporations or privilege taxpayers, and $350,000 in aggregate per fiscal year.

Which years does it cover? Tax years 2021 through 2025.

Can nonresidents or unused amounts carry over? Nonresident individuals may not claim it; the credit is nonrefundable and cannot be carried over.

What form is used? Schedule K-43, filed with the Kansas income or privilege tax return.

Citations and references

• Senate Bill 47 (2021), New Section 7 -- creates the Eisenhower Foundation credit for tax years 2021-2025.
• K.S.A. 79-32,110(a) and (c) -- income tax on resident individuals and corporations to which the credit applies.
• K.S.A. 79-1107 and 79-1108 -- financial-institution privilege tax to which the credit applies.
• Schedule K-43 -- the form for claiming the credit; the parallel Friends of Cedar Crest Association credit (Notice 21-11) uses Schedule K-46.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 21-10

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.org
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 21-10

                          EISENHOWER FOUNDATION CREDIT
                                       (JULY 1, 2021)

   During the 2021 Legislative Session Senate Bill 47 was passed and signed into law. New

Section 7 of the Bill creates an income or privilege tax credit for tax years 2021, 2022, 2023, 2024,
and 2025, for contributions to the Eisenhower Foundation. The amount of the credit is limited to
50% of the amount contributed to the Foundation, and is further limited to $25,000 for resident
individuals and $50,000 for corporations or privilege taxpayers in any one taxable year.
Nonresident individual may not claim the credit. In addition, the aggregate amount of credits
allowed is limited to $350,000 for any taxable year.

  The amount of the credit is also limited to the amount of tax due after all other credits have

been allowed. The credit reduces the taxpayer's tax liability for the year the contribution is made.
The credit is not refundable and cannot be carried over to another year.

   Specifically, the new statutory language provides:

         New Sec. 7. (a) For taxable years commencing after December 31, 2020, and
   before January 1, 2026, there shall be allowed a credit against the tax imposed by the
   Kansas income tax act and the privilege tax pursuant to K.S.A. 79-1106 et seq., and
   amendments thereto, in an amount equal to 50% of the total amount contributed during
   the taxable year by a taxpayer subject to income tax pursuant to K.S.A. 79-32,110(a)
   or (c), and amendments thereto, or subject to the privilege tax pursuant to K.S.A. 79-
   1107 and 79-1108, and amendments thereto, to the Eisenhower foundation.
         (b) The amount of such credit awarded to a taxpayer in a taxable year pursuant
   to this section shall not exceed:
         (1) $25,000 for any taxpayer subject to the income tax on resident individuals
   imposed pursuant to K.S.A. 79-32,110(a), and amendments thereto; or
         (2) $50,000 for any taxpayer subject to the income tax on corporations imposed
   pursuant to K.S.A. 79-32,110(c), and amendments thereto, or the privilege tax on
   financial institutions pursuant to K.S.A. 79-1107 and 79-1108, and amendments
   thereto.
         (c) The aggregate amount of credits claimed pursuant to this section shall not
   exceed $350,000 for any fiscal year.
         (d) The credit allowed by this section shall not exceed the amount of tax imposed
   under the Kansas income tax act or the privilege tax reduced by the sum of any other
   credits allowable pursuant to law. Such credit shall be deducted from the taxpayer's
   income or privilege tax liability for the taxable year in which the contributions are
   made by the taxpayer. The taxpayer shall not be allowed to carry over any amount of
   such credit exceeding the taxpayer's income or privilege tax liability.

Those claiming the credit should complete Schedule K-43, which must be filed with the

Kansas income or privilege tax return.

                               TAXPAYER ASSISTANCE

 Additional copies of this notice, forms or publications are available from our web site,

www.ksrevenue.org. If you have questions about this Notice, please contact:

                            Taxpayer Assistance Center
                           Kansas Department of Revenue
                           Scott Office Building, 1st Floor
                                  120 SE 10th Ave
                                   P. O. Box 3506
                              Topeka, KS 66601-3506
                                Phone: 785-368-8222
                                 Fax: 785-291-3614