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, effective after November 15, 2025. It limits the total amount of Kansas affordable housing tax credits awarded by the Kansas Housing Resources Corporation (KHRC) to $25 million, with a cap of $8.8 million for the years 2026 to 2028. Additionally, the bill stipulates that no new applications for credits will be accepted after the 2028 qualified allocation plan, effectively ending the program for new developments after that year. However, developments that have already received allocations prior to this cutoff will continue to receive their credits throughout the authorized period.

Furthermore, the bill introduces provisions for the Kansas housing investor tax credit, allowing for the transferability of credits from the year they were originally issued. It amends existing statutes to clarify the eligibility and allocation process for these credits, including the requirement for a recorded restrictive covenant for qualified developments. The bill also repeals previous sections of the law that are now outdated due to these changes. Overall, the legislation aims to streamline the affordable housing tax credit process while phasing out certain credits to focus on more sustainable funding for housing projects.

Statutes affected:
As introduced: 8-132, 8-147, 8-134
As Amended by Senate Committee: 8-132, 8-147, 8-134
Enrolled: 79-32