Kansas Community Tax Credits

Tax Credits to Support Rainbows
Kansas Community Tax Credits

Rainbows has a limited amount of tax credits available. Any business or individual subject to Kansas income tax, privilege tax or premium tax will qualify for the tax credit, equal to 50% of the contribution. 

About Community Service Tax Credits
Each year since 1994, the Kansas Community Service Program (KCSP) has given nonprofit organizations a way to improve their ability to undertake major capital fund raising drives for various projects. This year $4.1 million in tax credits has been allocated and will be awarded to selected nonprofit organizations to offer Kansas Tax Credits for contributions made to approved projects.

Projects eligible for tax credit awards include community service, crime prevention, healthcare, and youth apprenticeship and technical training. Tax credit awards are distributed through a competitive application process. Based on the scope and cost of the proposed project, applicants may request up to $200,000 in tax credits.

How Tax Credits Work
Any business firms or individuals subject to Kansas income tax, Kansas privilege tax or the premium tax or privilege fees imposed on insurance companies will qualify for the tax credit, equal to 50% of their contribution. 

For example, when a donor makes a contribution to the Community Service Tax Credit project at Rainbows, the donor will receive a 50% credit on their Kansas income tax.  A $50,000 donation will earn a $25,000 tax credit.  In addition, the $25,000 can still be claimed on the donors Federal tax return as a charitable deduction.

If the donor doesn’t have a tax liability, the donor gets a check for $25,000 (50%) from the State of Kansas.

For more information contact Angela Kessler, Vice President of Development, at 316.558.3482 or akessler@rui.org.