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HB 2387

Department of Rehabilitation Services; Commission of Rehabilitation Services; members; effective date.

2025 Regular Session Introduced by Ryan Eaves and 1 co-sponsor

Extends the 50% charitable tax credits for donations to Friends of Cedar Crest Association and the Eisenhower Foundation through tax year 2035, with per-year and aggregate limits.

Second Reading referred to Health and Human Services
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Bill Summary · HB 2387

HB 2387 — Summary (Extension of charitable contribution tax credits)

Status: Committee Report recommending bill be passed as amended by House Committee on Taxation. Introduced: Feb 4, 2025. Sponsors: House Committee on Taxation (requested by Friends of Cedar Crest Association) and multiple co‑sponsors.

Main purpose

Extend the sunset dates for two Kansas income/privilege tax credits that encourage private donations to:
- Friends of Cedar Crest Association; and
- The Eisenhower Foundation.

The extension keeps these 50% contribution tax credits available for additional taxable years.

Key provisions

  • Continues the 50% tax credit for qualified contributions to each organization for taxable years commencing after December 31, 2020 and before January 1, 2036 (i.e., effectively available through tax year 2035).
  • Per‑taxpayer limits (unchanged):
    • Individuals (resident): up to $25,000 credit per taxable year.
    • Corporations / privilege taxpayers: up to $50,000 credit per taxable year.
  • Annual aggregate cap: total credits claimed for each credit are capped at $350,000 per fiscal year.
  • Credits are nonrefundable and may not be carried forward — credit cannot exceed taxpayer’s tax liability after other credits.
  • Repeals and replaces the existing statutory sections to reflect the new sunset date(s).
  • Effective: upon publication in the statute book (standard language in the bill).

Who is affected

  • Donors: Kansas individual and corporate taxpayers who make qualifying contributions to the two named foundations — they remain eligible to claim a 50% state tax credit (subject to per‑taxpayer and aggregate caps).
  • Beneficiary organizations: Friends of Cedar Crest Association and the Eisenhower Foundation — they retain an incentive to solicit contributions from Kansas taxpayers.
  • State finances: continued annual reduction in State General Fund receipts relative to current law (see fiscal impact).

Fiscal impact

  • Department of Revenue / Division of the Budget estimates: extending the credit for one beneficiary is associated with a revenue loss of about $350,000 (estimated for FY2027 and subsequent years).
  • Committee fiscal analyses note that extending both credits (i.e., for both organizations) could reduce State General Fund receipts by up to about $700,000 per year if both credits are used up to the caps. The bill preserves the per‑year aggregate caps ($350,000 per credit) that limit annual exposure.

Procedure / next steps

  • The bill was considered and amended in the House Committee on Taxation to include both the Friends of Cedar Crest Association and the Eisenhower Foundation.
  • Committee report recommends passage as amended. If enacted, the statutory change will extend availability of these credits through contributions made in tax year 2035.

Compiled from official sources — confirm details with the bill’s official record.

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