This bill amends the Kansas housing investor tax credit by allowing for the transferability of tax credits from the year they were originally issued. Specifically, it modifies K.S.A. 2024 Supp. 79-32,313 to enable qualified investors, project builders, or developers to claim a tax credit against their income tax liability for cash investments in approved housing projects. The bill stipulates that if the tax credit exceeds the taxpayer's liability in a given year, the remaining credit can be carried forward for up to four subsequent years. Additionally, it allows for the transfer of any carried-forward credits to other taxpayers, who can then claim them against their own tax liabilities.

The bill also establishes specific limits on the amount of tax credits that can be issued based on the population of the county where the housing project is located, with a total cap of $13 million in credits per tax year. It mandates that a minimum of $2.5 million in credits be allocated for projects in smaller counties, while also allowing for the possibility of carrying forward unissued credits to the following year. Furthermore, the bill includes provisions for the secretary of revenue to adopt necessary regulations for implementation and states that the new transferability provisions will apply retroactively to credits issued for tax year 2022 and beyond. The existing section of K.S.A. 2024 Supp. 79-32,313 is repealed as part of this legislative update.

Statutes affected:
As introduced: 79-32