SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2201
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
Senate Sub. for HB 2201 would reduce corporation
income tax rates and repeal certain tax credits.

Corporation Income Tax Rates
The bill would specify that for tax year 2024, the
corporation income tax rate would be 3.5 percent; for tax year
2025, the corporation income tax rate would be 3.0 percent;
and for tax year 2026, and all future years, the corporation
income tax rate would be 2.75 percent.
[Note: The bill would not affect the corporation surtax
rate of 3.0 percent on all taxable income in excess of
$50,000.]

Repealed Tax Credits
The bill would repeal or discontinue the following tax
credits, effective tax year 2025:
● Contributions to an individual development
account;
● Business and job development;

____________________
*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
 ● Plugging abandoned oil or gas well;
● Agritourism liability insurance;
● Assistive technology contributions;
● Declared disaster capital investment;
● Environmental compliance;
● Owners Promoting Employment Across Kansas;
and
● Swine facility improvement.
Background
The bill was introduced by the House Committee on
Taxation at the request of Representative Awerkamp. As
introduced, HB 2201 contained provisions related to the
information provided on annual valuation notices.
On March 24, 2023, the Senate Committee on
Assessment and Taxation removed the contents, inserted
contents pertaining to residential property tax relief programs
and recommended a substitute bill be created.
On January 9, 2024, the substitute bill was withdrawn
from the Senate Calendar and rereferred to the Senate
Committee on Assessment and Taxation.
On March 25, 2024, the Senate Committee on
Assessment and Taxation removed the contents of the
substitute bill, inserted the amended contents of SB 546, and
recommended a substitute bill be created. Background
information for SB 546 is provided below.


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SB 546
SB 546 was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by representatives of Americans for Prosperity-
Kansas and the Kansas Policy Institute. The proponents
stated the bill would replace corporation tax subsidy
programs with broad-based corporation tax relief and
indicated the bill would improve economic competitiveness.
Opponent testimony was provided by representatives of
the Department of Commerce, Great Plains Manufacturing,
Greater Topeka Chamber, Kansas Economic Development
Alliance, Salina Community Economic Development
Organization, and Spirit Aerosystems. The opponents
generally stated the economic development programs
repealed by the bill have been valuable tools for economic
growth and job creation in Kansas, and the repeal of the
programs retroactively could expose Kansas to legal liability.
Written-only opponent testimony was provided by
representatives of City of McPherson, Harper Industries,
Kansas City Area Development Council, Lawrence Chamber,
Manhattan Area Chamber of Commerce, Olathe Chamber of
Commerce, Ortega Aviation Services, Overland Park
Chamber, Shawnee Chamber of Commerce, Sumner County
Economic Development, Thrive Allen County, and Wichita
Regional Chamber of Commerce.
Neutral testimony was provided by a representative of
the Kansas Chamber.
Written-only neutral testimony was provided by a
representative of Kansas Grain and Feed Association,

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Kansas Agribusiness Retailers Association, and Renew
Kansas Biofuels Association.
The Senate Committee amended the bill to eliminate
provisions repealing the High Performance Incentive Program
and the Promoting Employment Across Kansas Program.

Fiscal Information
According to the Department of Revenue, the bill would
reduce state revenue by $12.0 million in FY 2025, $46.1
million in FY 2026, and $60.7 million in FY 2027.
Any fiscal effect associated with the bill is not reflected
in The FY 2025 Governor’s Budget Report.
Taxation; income tax; credits; repeal; corporation income tax rates


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Statutes affected:
As introduced: 79-1460
S Sub for: 79-4508a
Version 3: 32-1438, 65-7107, 79-32, 74-50