SB 436 and HB 2687 — Tax Relief for Kansas Families

John Wilson | February 8, 2024

On February 1, 2024, we introduced SB 436 in the Senate Committee on Assessment and Taxation and an identical bill (HB 2687) in the House Committee on Taxation. This bold proposal would establish a universal state child tax credit, giving all Kansas parents and caregivers between $25-$600 for each child back on their tax returns.

The child tax credit gives families more money in their pockets to help them meet their basic needs, with a bonus of boosting local businesses with more money in the Kansas economy.

How Would the Child Tax Credit Work?

The tax credit would be effective for tax year 2024, and the amount would vary depending on a household’s Kansas Adjusted Gross Income (KAGI). The income guidelines are identical for married individuals filing jointly or as an individual. The threshold for income amounts and credit amounts is indexed to cost-of-living per a federal formula each calendar year after 2024.

Kansas Adjusted Gross Income	Amount of Credit per Qualifying Child
$0 to $25,000	$600
$25,001 to $50,000	$400
$50,001 to $75,000	$200
$75,001 to $100,000	$100
$100,001 to $200,000	$75
$200,001 to $350,000	$50
$350,001+	$25

Additionally:

• A child can only be claimed by one taxpayer per year; married individuals filing separately may each claim half of the credit amount.
• A qualifying child is one under 18 as of the end of the calendar year in which the taxable year begins.
• There is no limit to the number of qualifying children a parent can claim for the credit.

Impact of a Universal Kansas Child Tax Credit

A universal child tax credit is estimated to help around 647,000 kids living in Kansas households. The Kansas Division of Budget has not yet released a fiscal note on the proposal. However, the Institute on Taxation and Economic Policy estimates around $145 million would be given back to Kansas families each year, of which about $133 million would flow back to the bottom 80% of tax filers.

The Bottom Line

The expansion of the federal child tax credit led to the lowest childhood poverty level on record. The federal child tax credit has inspired states across the country to enact (or expand) state child tax credits to ensure the anti-poverty gains continue. 

Kansas lawmakers should join more than a dozen state that have seized the opportunity to enact a proven strategy to reduce childhood poverty by establishing a state child tax credit.

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