REVISED
SESSION OF 2022
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2237
As Amended by Senate Committee of the Whole

Brief*
HB 2237, as amended, would amend law related to the
Rural Opportunity Zone (ROZ) student loan repayment
program and the child day care services income tax credit.

Rural Opportunity Zone Program
The bill would extend the sunset on the ROZ student
loan repayment program from July 1, 2023, to July 1, 2026.
The bill would also extend the sunset on the income tax credit
and reporting requirements for the Secretary of Commerce
from January 1, 2024, to January 1, 2027. The bill would also
make a technical update.
The bill also would expand the eligibility for the ROZ
income tax credit to include individuals who move to an ROZ
on or after July 1, 2021, and prior to January 1, 2026, from a
metropolitan county within Kansas, which would be defined to
be Douglas, Johnson, Leavenworth, Sedgwick, Shawnee,
and Wyandotte counties.

Child Day Care Services Credit
The bill would allow any income or privilege taxpayer to
claim the child day care services credit and would permit
taxpayers to claim 50 percent of expenditures paid to an
organization providing child care to the taxpayer’s employees
____________________
*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
beginning in tax year 2021. Current law limits the credit to
corporation income taxpayers and does not permit the credit
for payments made to organizations.

Background
The bill was introduced by the House Committee on
Financial Institutions and Rural Development at the request of
Representative Kelly.

House Committee on Financial Institutions and Rural
Development
In the House Committee hearing, proponent testimony
was provided by Representative Kelly and the Executive
Director of the Montgomery County Action Council. The
proponents stated the bill is a precaution to ensure the
continuance of the ROZ program until other changes can be
made through forthcoming legislation.
Written-only proponent testimony was provided by the
directors and executive director of Gove County Economic
Development, Greeley County Community Development,
Kearny County Community Development, Republic County
Economic Development, and Scott County Development
Committee, Inc. Additional written-only proponent testimony
was provided by representatives of the Kansas Hospital
Association and League of Kansas Municipalities.
Neutral testimony was provided by the Legislative and
Policy Director of the Department of Commerce, who
provided a copy of the 2020 Annual Report on the ROZ
program. According to the report, 55 of the eligible 77 Kansas
counties offer student loan repayment; 20 counties only offer
the income tax waiver.
No other testimony was provided.

2- 2237
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Representative Kelly and representatives of
the Kansas Department of Commerce and the Montgomery
County Action Council. The proponents stated the bill is a
precaution to ensure the continuance of the ROZ program
until other changes can be made through forthcoming
legislation.
Written-only proponent testimony was provided by the
directors and executive director of Gove County Economic
Development, Greeley County Community Development,
Kearny County Community Development, Republic County
Economic Development, and Scott County Development
Committee, Inc. Additional written-only proponent testimony
was provided by representatives of the Kansas Hospital
Association and League of Kansas Municipalities.
No other testimony was provided.
The Senate Committee amended the bill to increase the
sunset extension from two years to five years, to change the
definition of rural opportunity zone, and to expand eligibility
for the ROZ income tax credit.
Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
add provisions related to the child day care tax credit and
adopted a technical amendment to remove provisions of the
bill that were previously enacted into law.
Fiscal Information
According to the Department of Revenue, enactment of
the bill would have the following effect on state receipts.

3- 2237
 (Dollars in millions)
FY 2023 FY 2024 FY 2025
Rural Opportunity Zones $ (0.9) $ (1.0) $ (6.6)
Child Day Care Services Tax Credit (0.1) (0.1) (0.1)
TOTAL $ (1.0) $ (1.1) $ (6.7)

Taxation; rural opportunity zones; child day care services tax credit


4- 2237


Statutes affected:
As introduced: 74-50, 79-32
As Amended by Senate Committee: 74-50, 79-32
{As Amended by Senate Committee of the Whole}: 74-50, 79-32
Enrolled: 11-201, 12-5242, 12-5249, 79-32