SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2414
As Recommended by House Committee on
Taxation

Brief*
HB 2414 would amend the Child Day Care Services
Assistance Tax Credit (credit).
The bill would provide for a 50.0 percent credit,
beginning in tax year 2021, for the amount of expenses an
employer pays to an organization providing child day care
services to the children of employees.
The bill would also raise the amount of the annual credit
for employers establishing and operating a facility, either
independently or in conjunction with other employers, in
Kansas providing child care for the children of their
employees from 30.0 percent to 50.0 percent of expenses
paid in the establishment and operation of such a facility in all
years following the year of establishment of the facility
(current law provides for a 50.0 percent credit in the year in
which the facility is established). As provided in current law,
any payments received for use of the services would be
deducted from the expenses subject to the credit.
The bill would allow any income or privilege taxpayer to
claim the credit beginning in tax year 2021. Current law limits
the credit to corporation income taxpayers.
Background
The bill was introduced by the Committee on Taxation at
the request of Representative Adam Smith.
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*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
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Vaughn on behalf of the
Early Learning Caucus; a resident of Leavenworth County;
and representatives of Kansas Action for Children, the
Kansas Children’s Service League, and the Greater Kansas
City Chamber of Commerce. Proponents stated the bill
would expand access to quality child care and help to keep
people in the workforce by creating additional child care
options.
Written-only proponent testimony was provided by
representatives of the Chamber of Lawrence, Kansas; Child
Care Aware of Kansas; the Children’s Alliance of Kansas; the
Coffeyville Area Chamber of Commerce; The Family
Conservancy; the Kansas Chamber of Commerce; Kansas
Head Start Association; the Overland Park Chamber of
Commerce; SugarCreek Packing Company; United WE; and
the Wichita Regional Chamber of Commerce.
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department estimates that the bill,
if enacted, would reduce State General Fund revenues by
$89,000 in FY 2022, with a similar fiscal effect in future years.
The Department also indicates it would require $97,164 from
the State General Fund in FY 2022 to implement the bill and
modify the automated tax system. Any fiscal effect associated
with the bill is not reflected in The FY 2022 Governor’s
Budget Report.
Income taxation; tax credits; child day care


2- 2414


Statutes affected:
As introduced: 79-32