This bill proposes a comprehensive overhaul of the taxation framework in Kansas, primarily aimed at reducing individual income tax rates while eliminating various tax credits associated with programs such as the high performance incentive program and the Kansas affordable housing tax credit act. Key changes include the repeal of tax credits for abandoned well plugging, agritourism liability insurance, and assistive technology contributions, as well as the discontinuation of benefits from the promoting employment across Kansas act. The bill introduces a new withholding tax rate of 2% starting July 1, 2021, which will not contribute to the job creation program fund during fiscal year 2026, and establishes that funds in individual development accounts will be disregarded when determining eligibility for public assistance.

Additionally, the bill amends K.S.A. 2024 Supp. 79-32,110 to revise income tax rates for resident individuals, setting a 5.2% rate for married individuals filing jointly with incomes not exceeding $46,000, and a similar structure for other individuals. It also introduces a tax credit for investments in qualified business facilities in nonmetropolitan regions, allowing for one-time credits and carryforward options. The Kansas affordable housing tax credit act will be discontinued on April 1, 2025, with no new applications accepted after this date, and credits for tax years commencing after December 31, 2025, will be disallowed, except for those previously allocated. Overall, the bill aims to incentivize investment and job creation while adjusting the income tax framework for residents.

Statutes affected:
As Introduced: 32-1438, 65-7107, 79-32, 74-50
As introduced: 32-1438, 65-7107, 79-32, 74-50