The bill amends the Kansas affordable housing tax credit act by discontinuing the tax credit for qualified developments that receive a 4% federal tax credit. The existing provisions that allowed for this credit, which were set to expire on July 1, 2025, are modified to continue only for developments that have already received allocations before that date. The Kansas Housing Resources Corporation (KHRC) will not accept applications for the 4% low-income housing tax credit after August 15, 2025, and will not approve any applications after November 14, 2025. However, the KHRC will continue to award credits to qualified developments receiving 9% federal tax credits in accordance with the act.

Additionally, the bill specifies that the maximum amount of Kansas affordable housing tax credits awarded by the KHRC in each qualified allocation plan year will not exceed 100% of the state housing credit ceiling for 9% federal tax credits allocated to Kansas. The bill also repeals the existing section of K.S.A. 2024 Supp. 79-32,306, which outlines the previous framework for the tax credit. Overall, the changes aim to streamline the tax credit process while limiting the availability of credits for certain developments.

Statutes affected:
As introduced: 79-32
As Amended by House Committee: 79-32
As Amended by Senate Committee: 79-32