SESSION OF 2024
SUPPLEMENTAL NOTE ON SUBSTITUTE FOR HOUSE
BILL NO. 2609
As Recommended by House Committee on
Taxation

Brief*
Sub. for HB 2609 would make changes to property tax
exemptions for certain electric generation property.
The bill would exempt the following property, as defined
by the bill, from all property and ad valorem taxes:
● Any new electric generation facility, including
nuclear energy facilities, for which construction
begins on or after January 1, 2025;
● Any new addition to an electric generation facility
constructed or installed on or after January 1,
2025; and
● Any new pollution-control device constructed or
installed at an electric generation facility on or after
January 1, 2025.
The new exemption would not apply to electric
generation facilities that convert renewable energy sources to
electricity and would apply for ten taxable years following the
commencement of construction or installation of the property.
[Note: Such facilities would continue to be eligible for property
tax exemptions under existing law.]
The bill would also specify that existing property and ad
valorem tax exemptions for electric generation facilities and
____________________
*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
additions to such facilities, including pollution-control devices,
would only apply to property for which an application for
exemption is filed prior to December 31, 2024.

Background
The bill was introduced by the House Committee on
Taxation at the request of a representative of Midwest
Energy, Inc.

House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Schreiber and
representatives of Evergy, Kansas Electric Cooperatives, and
Midwest Energy, Inc. The proponents generally stated
estimated electrical power demand is greater than the
estimated supply in future years, that Kansas needs more
independent power producers to install and operate peak
load generation plants, and that the bill would remove a
disadvantage such facilities have in comparison with electric
generation facilities owned by public utilities.
No other testimony was provided.
The House Committee amended the bill to provide for
uniform exemption durations for electric generation facility
property and sunset new applications for existing exemptions
beginning tax year 2025, and recommended a substitute bill
be passed incorporating the amendments.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue (Department) indicates there are currently no peak
load plants in Kansas exempt from taxation, and so
enactment of the bill would not have an effect on current
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revenues; however, potential future revenues could be
reduced by an unknown amount if peak load plants were to
be built in the future. The Department and the Kansas
Corporation Commission both indicate enactment of the bill
would have no fiscal effect on their operations. Any fiscal
effect associated with the bill is not reflected in The FY 2025
Governor’s Budget Report.
Taxation; property tax; exemptions; electric power generation


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Statutes affected:
As introduced: 79-257, 79-258
Version 2: 79-257, 79-258