Kansas Education Tax Credit Programs

Kansas Education Tax Credit Programs include the Tax Credit for Low-Income Students Scholarship Program (TCLISSP) and the Federal Tax Credit.

The TCLISSP is the main mechanism for funding private school scholarship. This 75% state income tax credit incentivizes private donors (individuals and corporations) to contribute to Scholarship Granting Organizations.

How the 75% State Tax Credit Works:

1. Donors (individuals or corporations) contribute to a registered Scholarship Granting Organization (SGO)
2. Iowa grants a 75% state income tax credit on the donation amount
3. The credit is non-refundable (can only offset existing state tax liability)
4. SGOs use donations to fund scholarships for eligible low-income students
5. Families apply to SGOs and receive scholarships to pay private school tuition

Donor Example: A $1,000 donation to an SGO results in a $750 state tax credit for the donor, effectively reducing the donation cost to $250 while funding a full $1,000 scholarship for an eligible student.

Program Scale:

• $10 million annual cap in state tax credits
• Resets January 1 each year
• First-come, first-served for donors and families
• As of December 2025, approximately $7.8 million remained available

Federal Tax Credit (NEW — Effective 2027):

The other Kansas Education Tax Credit Program is available starting in 2027 with the Federal Tax Credits. Passed in July 2025, Congress approved a new federal tax credit for donations to SGOs, offering a dollar-for-dollar federal credit of up to $1,700 per donor per year.

For Kansas Families: The federal tax credit may expand opportunities for scholarship funding starting in 2027. Check with your SGO and the Kansas Department of Education for updates on how it might affect scholarship availability.