SESSION OF 2022
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2219
As Amended by Senate Committee on
Commerce

Brief*
HB 2219, as amended, would create the Kansas
Targeted Employment Act (Act), which would establish a tax
credit for businesses that employ individuals who are Kansas
residents with developmental disabilities.
For tax years 2022 through 2027, a tax credit could be
claimed by a “targeted employment business,” as that term
would be defined by the bill, or by a taxpayer outsourcing
work to such a business. For every hour of work provided by
an “eligible individual,” as that term would be defined by the
bill, the qualified business would earn a tax credit equal to
50.0 percent of the wages paid, not to exceed $7.50 per hour.
The annual total of tax credits would be capped at $5.0
million. The tax credit would be nonrefundable and could not
be carried forward. To qualify for the tax credit, a business
would apply to the Secretary of Revenue by providing the
names of the eligible individuals, the hourly wage rate, hours
worked, and the gross wages excluding leave compensation.
The Secretary for Aging and Disability Services
(Secretary) would develop and implement a program to
measure the results of the tax credits and analyze the
employment of individuals with developmental disabilities,
their quality of life while employed, and the impact upon
taxpayer savings and government programs.

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 The Secretary would be required to annually report
findings to the House Committee on Commerce, Labor and
Economic Development and the Senate Committee on
Commerce. The bill would allow the Secretary to require the
release of certain tax data as a condition of a business’
participation in the tax credit program in order to assist with
the analysis. In addition, the Secretary of Revenue would be
required to provide tax information to the Secretary as
necessary to enable the Secretary to to fulfill the analysis.
The bill would require any confidential tax information to
remain confidential in a manner that would not permit the
identification of eligible individuals or targeted employment
businesses.
The Secretary and the Secretary of Revenue would be
authorized to adopt rules and regulations necessary to
administer the bill.
The bill would sunset on January 1, 2028.

Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of Representative Tarwater.
[Note: The bill contains provisions similar to those of
2020 Sub. for HB 2416, as recommended by the House
Committee on Commerce, Labor and Economic
Development.]

House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by representatives of COF Training Services,
the Disability Rights Center of Kansas, and Mac-Fasteners,
who stated the bill would incentivize employers to employ

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persons with developmental disabilities in Kansas, provide
meaningful opportunities for such individuals, and benefit
taxpayers by decreasing reliance on governmental programs.
Written-only proponent testimony was provided by
representatives of Hasty Awards, Inc., InterHab, and
Systemair.
No other testimony was provided.

Senate Committee on Commerce
In the Senate Committee hearing, proponent testimony
was provided by representatives of COF Training Services,
Disability Rights Center of Kansas, Inclusion Connections,
Integrated Employment Services, Interhab, and Sunflower
Health Plan. Testimony was also provided by several private
citizens. Proponents generally discussed the bill’s potential to
increase work opportunities of individuals with intellectual and
developmental disorders.
Written-only proponent testimony was provided by
representatives of Johnson County Developmental Supports,
Kansas Commission on Disability Concerns, Kansas Council
on Developmental Disabilities, and the Overland Park
Chamber. Testimony was also provided by a private citizen.
The Senate Committee made the following amendments
to the bill:
● Amended the definition of “eligible individual” to
include Kansas residents;
● Clarified that businesses receiving tax credits may
only apply them to one of their tax liabilities; and
● Adopted technical date and wording changes.


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Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Department of
Revenue estimates enactment of the bill would decrease
State General Fund (SGF) revenues by $5.0 million in FY
2022, with similar decreases in subsequent years. The
agency further indicates it would require 1.0 new FTE position
with a total of $201,598 from the SGF to implement the bill
and to modify the automated tax system. The Department for
Aging and Disability Services also indicates the agency would
require 5.0 new FTE positions and a total of at least $555,750
from the SGF in FY 2022 to implement the bill. Any fiscal
effect associated with the bill is not reflected in The FY 2022
Governor’s Budget Report.
Tax credits; targeted employment; developmental disabilities


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