SB 521

               {As Amended by Senate Committee of the Whole}
                     As Amended by Senate Committee
 Session of 2026
                        SENATE BILL No. 521
                    By Committee on Assessment and Taxation
                                     2-27
1 AN ACT concerning income taxation; relating to the child day care
2   services assistance tax credit; providing for credits for payment of
3   employee's child care and contributions to a third party for increased
4   child care options related expenses {and certain employer
5   contributions to expand community child care availability}; amending
6   K.S.A. 2025 Supp. 79-32,190 and repealing the existing section.
7
8 Be it enacted by the Legislature of the State of Kansas:
9     Section 1. K.S.A. 2025 Supp. 79-32,190 is hereby amended to read as
10 follows: 79-32,190. (a) Any taxpayer that pays for or provides expenses
11 related to the provision of child day care services, including the provision
12 of the service of locating such services, to its for the taxpayer's employees
13 or that provides facilities and necessary equipment for child day care
14 services shall be allowed a credit against the privilege or income tax
15 imposed by articles 11 and 32 of chapter 79 of the Kansas Statutes
16 Annotated, and amendments thereto, as follows for the following expenses:
17     (1) (A) Paying for child care for employees;
18     (B) establishing or expanding a child care program that is primarily
19 used by employees;
20     (C) paying for referral services that connect employees to child care
21 providers; and
22     (D) providing for collaborative child care investment with other
23 employers.
24     (2) Subject to the limits set forth in subsection (d) (c) {(d)}, the
25 taxpayer shall be allowed a credit of 30%75% of the total amount
26 expended pursuant to the expenses provided in paragraph (1) in the state
27 during the taxable year by a taxpayer for child day care services purchased
28 to provide care for the dependent children of the taxpayer's employees or
29 for the provision of the service of locating such services for such children;
30     (2) (A) in the taxable year in which a facility providing child day care
31 services in the state for use primarily by the dependent children of the
32 taxpayer's employees is established, 50% of the total amount expended
33 during such year by a taxpayer in the establishment and operation of such
34 facility;
 SB 521—Am. by SCW  2
1     (B) in the taxable years other than the taxable year to which
2 paragraph (2)(A) applies, 30% of the amount equal to the total amount
3 expended during the taxable year by a taxpayer for the operation of a
4 facility described in paragraph (2)(A) less the amount of moneys received
5 by the taxpayer for use of such facility for child day care services;
6     (3) (A) in the taxable year in which a facility providing child day care
7 services in the state for use primarily by the dependent children of the
8 taxpayers' employees is established in conjunction with one or more other
9 taxpayers, 50% of the total amount expended during such year by a
10 taxpayer in the establishment and operation of such facility;
11     (B) in the taxable years other than the taxable year to which
12 paragraph (3)(A) applies, 30% of the amount equal to the total amount
13 expended during the taxable year by a taxpayer for the operation of a
14 facility described in paragraph (3)(A) less the amount of moneys received
15 by the taxpayer for use of such facility for child day care services; and
16     (4) for all taxable years commencing after December 31, 2020, 50%
17 of the amount equal to the total amount expended during the taxable year
18 by a taxpayer as payments to an organization providing access to available
19 child day care services for the taxpayer's employees.
20     (b) Any taxpayer that pays contributions to a third party that help
21 improve the availability of child care options shall be allowed a credit
22 against the privilege or income tax imposed by articles 11 and 32 of
23 chapter 79 of the Kansas Statutes Annotated, and amendments thereto, in
24 an amount for expenses as follows:
25     (1) (A) Establishing or expanding a child care program, including
26 support to establish or maintain licensing;
27     (B) enabling a program to purchase learning materials or play
28 equipment;
29     (C) compensating professional development for child care staff;
30     (D) providing child care tuition assistance for families in need; and
31     (E) providing referral services that connect families to child care
32 providers.
33     (2) Subject to the limits set forth in subsection (d), the taxpayer shall
34 be allowed a credit of:
35     (A) 75% of the total amount expended pursuant to paragraph (1) if
36 the recipient accepts and serves children and families receiving a child
37 care subsidy; or
38     (B) 50% of the total amount expended pursuant to paragraph (1) if
39 the recipient does not accept or serve children and families receiving a
40 child care subsidy.
41     (c) {Any employer that financially contributes to a third party that
42 expands the availability of community child care shall be allowed a
43 credit against the privilege or income tax imposed by articles 11 and 32
 SB 521—Am. by SCW  3
1 of chapter 79 of the Kansas Statutes Annotated, and amendments
2 thereto, in an amount for expenses as follows:
3     (1) (A) Establishing or expanding a child care program, including
4 support to establish or maintain licensing;
5     (B) enabling a program to purchase learning materials or play
6 equipment;
7     (C) compensating professional development for child care staff;
8     (D) providing child care tuition assistance for families in need; and
9     (E) providing referral services that connect families to child care
10 providers.
11     (2) Subject to the limits set forth in subsection (d), the taxpayer
12 shall be allowed a credit of:
13     (A) 75% of the total amount expended pursuant to paragraph (1) if
14 the recipient accepts and serves children and families receiving a child
15 care subsidy; or
16     (B) 50% of the total amount expended pursuant to paragraph (1) if
17 the recipient does not accept or serve children and families receiving a
18 child care subsidy.
19     (c) }No credit shall be allowed under this section unless the child day
20 care facility or provider is licensed pursuant to Kansas law.
21     (c)(d)(c){(d)} The credit allowed by subsection (a)(1), (2)(B) and (3)
22 (B) subsections subsection {subsections} (a) and (b) {and (b)} shall not
23 exceed $30,000 $100,000 for any taxpayer during any taxable year. The
24 credit allowed by subsection (a)(2)(A), (3)(A) and (4) shall not exceed
25 $45,000 for any taxpayer during any taxable year. The amount of the credit
26 which exceeds the tax liability for a taxable year shall not be refunded to
27 the taxpayer. If the taxpayer is a corporation having an election in effect
28 under subchapter S of the federal internal revenue code or a partnership,
29 the credit provided by this section shall be claimed by the shareholders of
30 such corporation or the partners of such partnership in the same manner as
31 such shareholders or partners account for their proportionate shares of the
32 income or loss of the corporation or partnership.
33     (d)(e)(d){(e)} The aggregate amount of credits claimed under this act
34 for any fiscal year shall not exceed $3,000,000.
35     (e) For tax years 2013 through 2020, the income tax credit provided
36 by this section shall only be available to taxpayers subject to the income
37 tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and
38 amendments thereto, and shall be applied only against such taxpayer's
39 corporate income tax liability.
40      {(f) As used in this section, "community child care" means a for-
41 profit or not-for-profit provider of child care services that is open at least
42 nine hours per day and located within 45 miles of the employer that is
43 seeking the credit or such employer's offices.}
SB 521—Am. by SCW  4
1    Sec. 2. K.S.A. 2025 Supp. 79-32,190 is hereby repealed.
2    Sec. 3. This act shall take effect and be in force from and after
3 January 1, 2027, and its publication in the statute book.