This bill proposes comprehensive changes to Kansas' taxation framework, primarily aimed at reducing income tax rates for individuals and eliminating various tax credits associated with programs such as the high performance incentive program and the Kansas affordable housing tax credit act. Key deletions include the repeal of tax credits related to abandoned well plugging, agritourism liability insurance, and assistive technology contributions, among others. The bill also discontinues benefits from the promoting employment across Kansas act and ceases the crediting of certain amounts to the job creation program fund, with a specific amendment stating that no amounts shall be credited to this fund during fiscal year 2026. Additionally, it sets a deadline of July 1, 2025, for new applications under the promoting employment act and ensures that funds in individual development accounts will not affect eligibility for public assistance.

The bill amends K.S.A. 2024 Supp. 79-32,110 to revise income tax rates for various taxpayers from 2024 to 2028, establishing a tax rate of 5.2% for resident individuals with taxable income not exceeding $46,000, and a gradually decreasing rate for those exceeding this threshold. Starting in 2028, a uniform tax rate of 5.2% will apply to all individuals. The legislation introduces a new tax credit for investments in qualified business facilities, contingent on maintaining a minimum number of employees, and outlines the procedures for the Kansas Housing Resources Corporation to issue allocation certificates for tax credits. Importantly, the bill mandates that no credits will be allocated unless the qualified development complies with federal accessibility requirements, and it sets a deadline for the discontinuation of the Kansas affordable housing tax credit act by April 1, 2025.

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