Did Kansas extend its angel investor, Eisenhower Foundation, Cedar Crest, and aviation tax credits?

Plain-English summary

2026 House Bill 2464 extends the sunset dates on four Kansas income tax credits:

• Angel investor credit (K.S.A. 74-8133) — extended through tax year 2031. A new rule says that, for tax year 2027 and after, at least 25% of the total credits allowed each year must go to investors in qualified Kansas businesses located in counties with 50,000 or fewer people — but only in years when there are enough requests to allow it (measured by requests received on or before October 1). An "angel investor" is a high-net-worth accredited investor who funds start-up companies (K.S.A. 74-8132(a)).
• Eisenhower Foundation credit (K.S.A. 79-32,274) — the sunset moves from tax years beginning before January 1, 2026 to before January 1, 2031. The credit stays capped at $350,000 per fiscal year in total.
• Friends of Cedar Crest Association credit (K.S.A. 79-32,275) — same extension to before January 1, 2031, same $350,000-per-fiscal-year aggregate cap.
• Aerospace and aviation-related program credits (K.S.A. 79-32,290 through 79-32,293, under K.S.A. 79-32,295) — extended from December 31, 2026 to December 31, 2031. This covers the tuition-reimbursement credit, the employer compensation credit, and the credit for qualified employees. No new credits can be issued or earned after December 31, 2031.

The amendments take effect July 1, 2026.

What this means for you

Angel investors / start-up funders

• The credit is available for two more cycles than before — through tax year 2031.
• Beginning in 2027, a 25% set-aside steers a quarter of each year's credits toward investments in smaller Kansas counties (population 50,000 or fewer), in years with enough demand. If you invest in rural Kansas start-ups, this may improve your odds of securing credit; get your request in by October 1.

Donors to the Eisenhower Foundation or Friends of Cedar Crest

• Contributions you make through 2030 (before January 1, 2031) can still qualify for the credit that had been set to expire after 2025.
• Each program's credits are capped at $350,000 statewide per fiscal year, so the credit is limited and may run out; confirm availability before relying on it.

Aerospace/aviation employers, graduates, and tuition-reimbursing employers

• The aviation-related credits (tuition reimbursement, employer compensation, and qualified-employee credits) now run through the end of 2031 instead of 2026.
• Plan around the hard stop: no new credits after December 31, 2031.

Common questions

Q: What law made these changes?
A: 2026 House Bill 2464, effective July 1, 2026.

Q: How long is the angel investor credit extended?
A: Through tax year 2031, with a new 25% set-aside (starting tax year 2027) for investments in Kansas counties of 50,000 or fewer people.

Q: What are the Eisenhower Foundation and Cedar Crest caps?
A: Each is capped at $350,000 in total credits per fiscal year, and both now sunset for contributions made before January 1, 2031.

Q: When do the aviation credits end?
A: They are extended to December 31, 2031; no new credits can be issued or earned after that date.

Citations and references

• House Bill 2464 (2026) — the enacting law; amendments effective July 1, 2026.
• K.S.A. 74-8133 / 74-8133(b) (Section 1) — angel investor credit extended through tax year 2031; 25% set-aside for counties of 50,000 or fewer (tax year 2027+), based on requests received by October 1.
• K.S.A. 74-8132(a) — definition of "angel investor" (high-net-worth accredited investor; high net worth defined by 17 C.F.R. § 230.501(a) as in effect July 1, 2004).
• K.S.A. 79-32,274 (Section 2) — Eisenhower Foundation credit; sunset extended to before January 1, 2031; $350,000 fiscal-year cap.
• K.S.A. 79-32,275 (Section 3) — Friends of Cedar Crest Association credit; sunset extended to before January 1, 2031; $350,000 fiscal-year cap.
• K.S.A. 79-32,295, 79-32,290, 79-32,291, 79-32,292, 79-32,293 (Section 4) — aerospace/aviation program credits extended from December 31, 2026 to December 31, 2031; no new credits after December 31, 2031.
• Effective date: July 1, 2026.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 26-03

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                        NOTICE 26-03

                               CHANGES TO
 ANGEL INVESTOR, EISENHOWER FOUNDATION, CEDAR CREST, AND AVIATION CREDITS

                                        (JULY 1, 2026)


   During the 2026 Legislative Session House Bill 2464 was passed and signed into law. The

Bill amends Kansas law affecting certain income tax credits.

   Section 1 of the Bill amends K.S.A. 74-8133 which provides an income tax credit for an

angel investor. As defined in K.S.A. 74-8132(a), an angel investor is an accredited investor who
is a natural person or an owner of a permitted entity investor, who is of high net worth, as defined
in 17 C.F.R. § 230.501(a), as in effect on July 1, 2004, and who seeks high returns through private
investments in start-up companies and may seek active involvement in business, such as consulting
and mentoring the entrepreneur.

   Specifically, K.S.A. 74-8133(b) is amended to extend the credit through tax year 2031, and

includes a new provision which provides that, for tax year 2027 and all tax years thereafter, at least
25% of the total amount of tax credits that may be allowed each tax year shall be utilized for
investors investing in qualified Kansas businesses located in counties with a population of 50,000
or fewer, in years that the number of requests is sufficient to allow such distribution of tax credits.
The determination of whether there are sufficient requests shall be made based on the requests
received on or before October 1 of each year.

   Section 2 of the Bill amends K.S.A. 79-32,274 to extend the sunset date of the tax credit for

contributions to the Eisenhower Foundation from taxable years beginning before January 1, 2026
to taxable years beginning before January 1, 2031. Contributions to the Eisenhower Foundation
made prior to January 1, 2031 may continue to qualify for the credit. However, the aggregate
amount of credits claimed pursuant to this section will not exceed $350,000 for any fiscal year.
For additional information about the Eisenhower Foundation credit, see Notice 21-10 Eisenhower
Foundation Credit.

   Section 3 of the Bill amends K.S.A. 79-32,275 to extend the sunset date of the tax credit for

contributions to the Friends of Cedar Crest Association from taxable years beginning before
January 1, 2026 to taxable years beginning before January 1, 2031. Contributions to the Friends
of Cedar Crest Association made prior to January 1, 2031 will continue to qualify for the credit.
However, the aggregate amount of credits claimed pursuant to this section will not exceed
$350,000 for any fiscal year. For additional information about the Friends of Cedar Crest
Association, see Notice 21-11 Friends of Cedar Crest Association Credit.

  Section 4 of the Bill amends K.S.A. 79-32,295 to extend the sunset date of the tax credits for

graduates of aerospace and aviation-related programs and employers of program graduates (K.S.A.
79-32,290), including the tax credit for qualified employer tuition reimbursement (K.S.A. 79-
32,291), the credit for qualified employer for compensation paid to qualified employees (K.S.A.
79-32,292), and the credit for qualified employees (K.S.A. 79-32,293), from December 31, 2026
to December 31, 2031. No new credits can be issued or earned after December 31, 2031. For
additional information regarding the aviation-related credits, see Notice 22-10 Aviation and
Aerospace Tax Credits.

 The amendments become effective July 1, 2026.



                                 TAXPAYER ASSISTANCE

 Additional copies of this notice, forms or publications are available from our web site,

www.ksrevenue.gov. If you have questions about this Notice, please contact:

                               Taxpayer Assistance Center
                             Kansas Department of Revenue
                            Scott Office Building, 1st Floor
                                    120 SE 10th Ave
                                    P. O. Box 3506
                                Topeka, KS 66601-3506
                                  Phone: 785-368-8222
                          Hearing Impaired TTY: 785-296-6461
                                   Fax: 785-291-3614