The proposed bill seeks to amend Kansas tax law by reducing income tax rates for individuals and eliminating various tax credits associated with incentive programs. Key changes include the discontinuation of income, premium, and privilege tax credits related to the high performance incentive program and the Kansas affordable housing tax credit act, as well as the repeal of credits for abandoned well plugging, agritourism liability insurance, and assistive technology contributions. The bill also proposes to cease benefits from the promoting employment across Kansas act and halts the crediting of certain amounts to the job creation program fund, with a specific stipulation that no amounts shall be credited to this fund during fiscal year 2026.

Additionally, the bill amends K.S.A. 2024 Supp. 79-32,110 to revise income tax rates, establishing a uniform tax rate of 5.2% for all individuals starting in tax year 2028. It introduces a one-time tax credit for investments in qualified business facilities in nonmetropolitan regions, allowing for the transfer of up to 50% of the tax credit for certain projects. The bill also outlines procedures for the Kansas Housing Resources Corporation to issue allocation certificates for tax credits related to qualified developments, with a discontinuation date for the Kansas affordable housing tax credit act set for April 1, 2025. Overall, the bill represents a significant shift in Kansas tax policy, focusing on reducing tax credits and altering income tax structures while enhancing incentives for business investments.

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