Frequently Asked Questions
Who is eligible to receive a tax credit from the TCLISS Program?
- Individuals and businesses (including shareholders, partners, members in pass-through entities and fiduciary taxpayers)
- Taxpayers with a privilege tax liability
- Taxpayers with a premium tax liability
- Corporate income tax liability
- C Corporations filing a corporate income tax return pursuant to the Kansas income tax act and amendments thereto
- Taxpayers filing a privilege tax return pursuant to K.S.A. 79-1105c et seq. and amendments thereto
- Companies filing an insurance premium tax statement pursuant to K.S.A. 40-252 and amendments thereto
How much can I contribute?
The total amount of contributions from any tax payer shall not exceed $500,000 for any individual tax year and total annual tax credits allowed under this program shall not exceed $10 million.
What amount can be applied to tax liability?
Qualified contributors may receive a Kansas tax credit that equals 70% of the total amount donated to a SGO during the taxable year. The credit will be claimed and deducted from the taxpayer’s tax liability during the tax year in which the contribution was made, or if the credit allowed exceeds the tax liability for a taxpayer, they may carry the credit forward to the next succeeding tax year or years until the total amount of the credit has been deducted from the contributor’s tax liability.
Are there any limitations of credit?
If the amount of credit exceeds the contributor’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used. The total amount of credits currently allowed under this program shall not exceed $10 million for any one tax year.
What is a Scholarship Granting Organization (SGO)?
A “SGO” is defined as an organization that complies with the requirements of this program and provides educational scholarships to students attending qualified schools of their parents’ choice. Renewanation is a KS State Board of Education certified SGO for this scholarship program.
How do I get a tax deduction for my gift?
A “Tax Credit Certificate” will be issued by the SGO to each contributor for approved contributions. This certificate will be used when the contributor completes their tax return to claim the tax credit.
What can I give?
“Approved contributions” shall consist of cash (includes checks and credit cards), stocks or bonds, personal property items, and real estate.
How does my donation help students?
Donations will be made to a SGO who will disburse not less than 90% of the contribution to qualified schools for eligible students in the form of educational scholarships. Funds must be distributed within 36 months of receipt.
What is the scholarship value?
The “scholarship” may not exceed $8,000 per eligible student for each school year and shall cover all or a portion of the costs of tuition, fees, school provided transportation, and pertinent expenses.
What schools qualify to receive SGO funding?
A “qualified school” is any nonpublic school that:
- Provides a K-12 education
- Has notified the state board of its intention to participate
- Complies with the requirements of the program
Is my child eligible for a scholarship?
An “eligible student” is a child who:
- (1)(a) is an “at-risk” student (student who is eligible for free meals under the National School Lunch Act) and who is attending full-time a school that would qualify as one of the lowest 100 performing schools (with respect to student achievement) or
- (1)(b) has received an educational scholarship under this program and has not graduated from high school or reached 21 years of age;
- (2) resides in KS while receiving an educational scholarship; and
- (3)(a) was enrolled in any public school in the previous school year in which an educational scholarship is first sought for the child; or
- (3)(b) is eligible to be enrolled in any public school in the school year in which an educational scholarship is first sought for the child and the child is under the age of 6 years.