New Kansas law expands tax credits for employers supporting child care services

Gov. Laura Kelly, shown here answering a reporter's questions in February, signed a bill on April 27, 2026, that expands employer tax credits for child care. (Photo by Sherman Smith/Kansas Reflector)

TOPEKA — A new Kansas law expands tax credits for employers paying for child care services or contributing to community-based child care services. 

Gov. Laura Kelly signed Senate Bill 82 into law Monday, saying it supports child care access and the economy. The bill provides a 75% tax credit for employer costs related to paying for employees’ child care expenses, establishing or expanding a child care program, or paying for referral services to connect employees with child care. 

“Senate Bill 82 helps strengthen child care access while ensuring our economy remains healthy and thriving — making our state more appealing to workers, employers, and families alike,” Kelly said in a news release. “This is smart, commonsense legislation that will make our state stronger.” 

David Jordan, president and CEO of the United Methodist Health Ministry Fund, said in written testimony on the bill that it modernizes tax credits and supports families. 

“When families cannot find or afford child care, parents are forced to reduce work hours or leave the workforce entirely, creating economic stress for families and workforce challenges for employers,” he said. 

Jordan praised the new law, saying employers want to be part of supporting child care and streamlining tax credits will make that easier. 

The bill also included a tax credit for people who purchase lockable gun and ammunition storage and creates a nonrefundable income tax credit of $0.05 for each gallon of E15 or higher ethanol blend fuel sold at retail. 

Kelly also signed the following bipartisan legislation: 

Senate Bill 51 authorizes the chief information security officer to receive audit reports, updates responsibilities of the chief information technology officer and authorizes the office of information technology services to provide certain services.

Senate Bill 300 creates requirements for certain manufacturers of alcoholic liquor regarding corporation income tax and repeals statutory language. 

Senate Bill 430 adds mitragynine, a psychoactive component of kratom, to the schedule I of the Uniform Controlled Substances Act, and reconciles two amendments to specific statutes regarding theft and expungement. 

House Bill 2029 reconciles amendments to statutes amended more than once during the current and prior legislative sessions.