Individual Development Account Tax Credit Program

Individual Development Account Tax Credit Program is sponsored by Kansas Department of Commerce. Allows administering organizations to provide qualified Kansans of low-income levels the opportunity to achieve financial self-sufficiency through education and asset development via special savings accounts.

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Taxes, Credits, & Exemptions To The Stars: Kansas Business Awards Corporate & Professional Services Food Processing and Manufacturing Energy & Natural Resources Tax Credits and Financing / Individual Development Account Tax Credit Individual Development Account Tax Credit Individual Development Account (IDA) Amplifying fundraising activities for non-profits to strengthen individual economic prosperity.

IDA allows administering organizations to provide qualified Kansans of low-income levels the opportunity to achieve financial self-sufficiency through education and asset development via special savings accounts. An Individual Development Account, also known as an “IDA,” is a savings account for low-income workers that can be used for small-business development, higher education, or purchasing a first home.

Under this program, the state authorizes specially selected non-profit organizations to offer tax credits to donors contributing to the approved programs. Applicant organizations are eligible for a 75 percent credit. The goals of the IDA Program are to decrease the number of Kansans receiving public income support and the number of communities with a high concentration of poverty.

The IDA Program raises the quality of life for all Kansans by increasing: The number of Kansans living above the federal poverty line Kansans who become homeowners Kansans completing over 12 years of education $500,000 in state tax credits have been allocated for the Individual Development Account Tax Credit Program in 2025. The maximum award of tax credits is $100,000.

However, if the total number of requests for tax credits by community-based organizations is less than $500,000, additional tax credits may be awarded by Commerce to a previously selected Administrator.

Under IDA each proposal shall create opportunities for Program Participants to accrue savings for the following purposes: 1) Purchase of a first home 3) Build on a small business 4) Pay for college or specialized training The Department of Commerce will evaluate all proposals based on project need, innovation, planning, agency capacity, fundraising capacity, and overall quality of the application.

Key considerations include: Describing the community needs that the proposed program will benefit. Addressing the impact of the project on the community with projected statistical results. Demonstrating how the project will impact the community and how broad-based support has been gathered.

Demonstrating the ability and capacity to administer a program. Download the program guidelines for more information on program requirements. Any religious association, charitable association, or tribal entity may submit a proposal to serve as a community-based Program Administrator.

The IDA application period is now closed. Watch this page for future details. The IDA application period is now closed.

Watch this page for future details. Frequently Asked Questions How does an IDA account work? An Individual Development Account, also known as an “IDA,” is a savings account for low-income workers that can be used for small-business development, higher education, or the purchase of a first home.

Each time a Program Participant makes a deposit, the IDA Program contributes an additional deposit called a “match. ” The match can be up to a 3:1 match on every dollar a participant saves. For example, if an IDA program offers a 2:1 match, each time a deposit of $25 is made, the program sets aside an additional $50.

Kansans with higher income levels can help others achieve financial independence by contributing to the program while receiving a 75% income tax credit for their donation to the program. State tax credits reduce the total amount of taxes owed to the state. They are a way for a taxpayer to substantially reduce the cost of making a contribution to a charitable organization.

These credits are refundable AND transferable. Who is eligible for Tax Credits? The tax credit is for contributions made by business firms or individuals subject to Kansas income tax, Kansas privilege tax or the premium tax or privilege fees imposed on insurance companies.

The minimum amount that can be donated is $250. There is no maximum amount. What is the Department of Commerce’s role in selling the tax credits It is the responsibility of the nonprofit organization to solicit donations, complete the necessary paperwork and send the information to the Kansas Department of Commerce for processing.

The Kansas Department of Commerce will provide contact information to potential donors that are interested in donating. Are these tax credits refundable or carried forward? If the credit exceeds the donor’s tax liability in any one taxable year, the remaining portion of the credit shall be refunded.

Tax credits may not be carried forward. IDA tax credits are not transferrable. Tax Credit % Organization Name City Contact Phone # Credits Awarded 75% Interfaith Housing & Community Services, Inc. Hutchinson Lacy Stauffacher (620) 662-8370 $500,000.

000 75% Community Housing of Wyandotte County Kansas City Carlanda McKinney (913) 342-7580 $100,000. 00 Tax Credit % Organization Name City Contact Phone # Credits Awarded 75% Interfaith Housing & Community Services, Inc. Hutchinson Lacy Stauffacher (620) 662-8370 $500,000. 00 75% Community Housing of Wyandotte County Kansas City Carlanda McKinney (913) 342-7580 $100,000.

00 Tax Credit % Organization Name City Contact Phone # Credits Awarded 75% Interfaith Housing & Community Services, Inc. Hutchinson Lacy Stauffacher (620) 662-8370 $500,000. 00 75% Build WyCo Kansas City Carlanda McKinney (913) 342-7580 $100,000.

00 Tax Credit Application (for organization contributions) Shareholder Form (for organization contributions) K-68 Form (for program donors) Kerri Falletti, Grassroots Strategy Developer Want to Learn More About Community Development Programs?

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