SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2544
As Further Amended by House Committee on
Commerce, Labor and Economic Development

Brief*
HB 2544, as amended, would create two tax credits
related to the employment of Kansas residents who are
members in good standing of the Kansas Army or Air National
Guard (National Guard).

Employer Credit
The bill would create, for tax years 2025 through 2029, a
credit applicable to income, privilege, or premium tax credit of
employers of Kansas resident members of the National
Guard in good standing equal to 10 percent of the total
compensation, excluding retirement, health care, and other
benefits, paid to the National Guard member by the employer
during the tax year, with a maximum annual credit of $1,000
per National Guard member per employer.
The bill would specify the credit could be claimed after
all other credits and could not be refunded or carried forward.

Employee Credit
The bill would create, for tax years 2025 through 2029, a
credit applicable to the Kansas income tax of Kansas resident
members of the National Guard equal to 10 percent of the
amount of compensation, excluding retirement, health care,
and other benefits, received by the employee, prorated for the
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
number of entire months the individual was a member in good
standing of the National Guard during the tax year.
The credit would be capped at $1,000 per taxpayer per
year and could not be refunded or carried forward. If the
individual is dishonorably discharged, discharged under
other-than-honorable conditions, or discharged for bad
conduct from the National Guard, no credit would be allowed.
The bill would require the National Guard to annually
send a notice by electronic mail to any members during the
prior year informing them that they may be eligible for the
employee income tax credit that would be provided by the bill.

Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of Representative L. Williams.

House Committee on Commerce, Labor and Economic
Development
At the House Committee hearing, proponent testimony
was provided by Representatives L. Williams and B.
Carpenter and a representative of the Kansas Chamber.
Proponents generally stated the bill would improve Kansas
retention of National Guard members and improve the
connection between members of the National Guard and
employers in Kansas.
Written-only proponent testimony was provided by
Representative Turk and representatives of the Enlisted
Association of the National Guard – Kansas, Greater Kansas
City Chamber of Commerce, National Guard Association of
Kansas, and Wichita Regional Chamber of Commerce.
No other testimony was provided.

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 The House Committee amended the bill to eliminate a
requirement that the member of the National Guard be
employed on a full-time basis, to require the National Guard
member to be a resident of Kansas, to provide for the credit
to not be available under certain discharge circumstances,
and to replace a flat $5,000 employee tax credit with a credit
of 10 percent of compensation, prorated and capped.
On February 23, 2024, the bill was withdrawn from the
House Calendar and referred to the House Committee on
Appropriations. On February 28, 2024, the bill was withdrawn
from the House Committee on Appropriations and rereferred
to the House Committee on Commerce, Labor and Economic
Development. On March 11, the House Committee further
amended the bill to limit the credits to tax years 2025 through
2029, limit the amount of each credit to $1,000, and require
notices to be sent to members of the National Guard.

Fiscal Information
According to the Department of Revenue, enactment of
the bill, as further amended, would reduce state revenues by
$3.8 million per year beginning in FY 2026. Any fiscal effect
associated with enactment of the bill is not reflected in The
FY 2025 Governor’s Budget Report.
Taxation; income tax; tax credits; national guard


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