Application Details
The IDA application period is now closed. Watch this page for future details.
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:
$500,000 in state tax credits have been allocated for the Individual Development Account Tax Credit Program in 2023. 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
2) Pay for home repairs
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:
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.
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.
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.
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.
Sara Bloom, Community Development Specialist IDA and CSP Tax Credit Program Coordinator
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