Is Kansas participating in the new federal tax credit for donations to scholarship granting organizations?

Plain-English summary

2026 Senate Bill 361 has the State of Kansas elect to participate in the new federal tax credit for individuals' contributions to scholarship granting organizations under section 25F of the federal Internal Revenue Code (IRC), for all taxable years beginning after December 31, 2026.

The key point: this is a federal income tax credit, not a Kansas credit. SB 361 does two things:

1. Kansas opts in to the federal section 25F credit (states must elect to participate).
2. It requires the Kansas state treasurer to annually provide the U.S. Secretary of the Treasury (or the Secretary's designee) any required information — including a list of the scholarship granting organizations located in Kansas that meet the requirements of IRC section 25F.

The new law is effective July 1, 2026.

What this means for you

Kansas donors to scholarship granting organizations

• Because Kansas has elected in, individuals who contribute to a qualifying Kansas scholarship granting organization may be able to claim the federal section 25F credit for tax years beginning after December 31, 2026.
• The credit and its rules (eligibility, amount, limits) are set by federal law (IRC § 25F) and administered by the IRS — this Kansas notice only announces the state's participation and reporting role, not the amount of the credit.

Scholarship granting organizations in Kansas

• The state treasurer will report a list of qualifying Kansas SGOs to the U.S. Treasury each year. To be on that list, an organization must meet the requirements described in IRC section 25F.

Tax preparers

• Look to federal guidance (IRS/Treasury) for how the section 25F credit is computed and claimed. This notice confirms Kansas's election and the state treasurer's annual reporting duty; it does not create a separate Kansas tax credit.

Common questions

Q: Is this a Kansas tax credit?
A: No. It is a federal income tax credit under IRC section 25F. Senate Bill 361 simply has Kansas elect to participate.

Q: When does it apply?
A: For all taxable years beginning after December 31, 2026. The law is effective July 1, 2026.

Q: What does Kansas actually do?
A: The state treasurer must annually provide the U.S. Secretary of the Treasury (or the Secretary's designee) any required information, including a list of qualifying Kansas scholarship granting organizations.

Q: Where do I find the credit amount and rules?
A: In federal law — IRC section 25F and related IRS/Treasury guidance — not in this Kansas notice.

Citations and references

• Senate Bill 361 (2026), Section 1 — Kansas elects to participate in the federal section 25F credit for individual contributions to scholarship granting organizations, for all taxable years beginning after December 31, 2026; requires the state treasurer to annually report required information, including a list of qualifying Kansas SGOs.
• 26 U.S.C. § 25F (IRC section 25F) — the underlying federal tax credit for individuals' contributions to scholarship granting organizations.
• Effective date: July 1, 2026.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 26-10

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.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                        NOTICE 26-10

                                   FEDERAL TAX CREDIT
                             FOR CONTRIBUTIONS BY INDIVIDUALS
                          TO SCHOLARSHIP GRANTING ORGANIZATIONS

                                        (JULY 1, 2026)

   During the 2026 Legislative Session Senate Bill 361 was passed and became law. Section 1

of the Bill provides that the state of Kansas elects to participate in the new federal tax credit for
contributions of individuals to scholarship granting organizations pursuant to section 25F of the
federal internal revenue code (IRC) of 1986, as amended, for all taxable years beginning after
December 31, 2026. It also provides that, in accordance with section 25F of the IRC the state
treasurer is required to annually provide to the secretary of the treasury or the secretary's designee
any required information, including, but not limited to, a list of the scholarship granting
organizations that meet the requirements described in section 25F of the IRC that are located in
the state of Kansas.

   The new law is effective July 1, 2026.




                                   TAXPAYER ASSISTANCE

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

www.ksrevenue.gov. 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
                             Hearing Impaired TTY: 785-296-6461
                                      Fax: 785-291-3614