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 economic development programs. Key provisions include the repeal of tax credits related to the high performance incentive program, the Kansas affordable housing tax credit act, and several others, including those for abandoned well plugging and agritourism liability insurance. The bill establishes a new withholding tax rate of 2% for individuals starting July 1, 2021, and amends existing statutes to reflect these changes. For tax year 2024, the bill sets specific income tax rates for married individuals and other taxpayers, with a flat rate of 5.2% for all individuals starting in tax year 2028.

Additionally, the bill introduces a tax credit for investments in qualified business facilities in nonmetropolitan regions, incentivizing job creation and investment in these areas. It outlines procedures for the Kansas Housing Resources Corporation to issue allocation certificates for tax credits and establishes a timeline for the discontinuation of the Kansas affordable housing tax credit act, with no new applications accepted after April 1, 2025. The bill also includes provisions for the repeal of several statutes related to tax credits, effective January 1, 2026, and will take effect upon publication in the Kansas register.

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