BUSINESS

Kansas Announces Multiple State Tax Credits and Extensions

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Topeka, Kansas. On Wednesday, July 1, 2026, the Kansas Department of Revenue published four notices announcing new and amended tax credits and extensions covering ethanol retailers, angel investors, gun- and ammunition-storage expenditures, and state participation in a federal scholarship contribution tax credit for taxable years beginning after Dec. 31, 2026. The notices specify an ethanol retailer credit effective for tax years 2026 through 2028 with a maximum $2,500,000 annual cap; extension of the angel investor credit through 2031 with at least 25 percent of credits allocated to businesses in counties under 50,000 population beginning in 2027; a 25 percent gun-storage credit capped at $250 per taxpayer; and treasurer reporting requirements for scholarship-granting organizations.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

July 1, 2026 — Notice 26-03 issued: angel investor credit extended through 2031; aviation/aerospace credits extended.
July 1, 2026 — Notice 26-04 issued: new ethanol retailer tax credit for tax years 2026–2028 with $2.5M cap.
July 1, 2026 — Notice 26-06 issued: new gun-storage income tax credit equal to 25% of expenditures up to $250.
July 1, 2026 — Notice 26-10 issued: Kansas to participate in federal Section 25F scholarship contribution credit; treasurer reporting required.
2027–2031 — Allocation and extension provisions take effect (25% rural allocation starting 2027; credits extend to 2031 where specified).

Why This Matters to You

These new tax credits and extensions could mean more money in your pocket. If you're an ethanol retailer, angel investor, or have gun-storage expenses, you could see significant savings. And if you contribute to scholarship funds, keep an eye on the new federal credit.

The Bottom Line

Kansas is making moves to support various sectors with these tax benefits. Check if you qualify for any of these credits and plan accordingly. Worth forwarding if you know someone who might benefit from these changes.

Who Benefited

Beneficiaries include ethanol retailers eligible for credits up to $2.5 million per year, angel investors in qualified Kansas businesses receiving extended credits through 2031 (with rural allocation requirements), taxpayers claiming gun-storage credits, and scholarship-granting organizations benefiting from federal contribution-linked credits.