SB 536 changes how Kansas taxpayers can benefit from the High Performance Tax Credit Program by converting the existing income tax credit into a direct rebate payment. The bill applies to businesses investing in qualified facilities located outside of metropolitan counties and establishes specific rebate amounts based on the number of jobs created and the size of the investment. Under the new rules, businesses in nonmetropolitan regions receive $2,500 per job plus $1,000 for every $100,000 invested, while other qualifying businesses receive $1,500 per job plus the same investment bonus. The legislation also sets a maximum cap on the rebate amount and ends eligibility for new investments starting January 1, 2027.
SB 521 creates tax credits for Kansas businesses that provide or support child care for their employees. Businesses can claim credits of 30-75% of expenses for paying for employee child care, establishing on-site facilities (50% in the first year), collaborating with other employers, or contributing to third parties improving child care access (50-75% depending on whether they serve families using subsidies). Credits are capped at $100,000 annually per business and require licensed child care providers. The bill, effective January 2027, repeals the previous tax credit provision and limits total annual credits to $3 million statewide.
HB 2628 creates a refundable Kansas income tax credit for residents paying tuition and fees at eligible colleges or universities. It allows qualifying taxpayers to claim up to $300 per year toward these costs for themselves or their child, with any unused portion refunded if the credit exceeds their tax bill. The credit applies to Kansas residents who paid for attendance at institutions meeting state-defined standards under K.S.A. 72-3222. This policy directly supports families and individuals covering higher education expenses, making the credit accessible even if they owe no state income tax.
HB 2680 renames Kansas' low-income student scholarship program to the "Kansas K-12 Students Scholarship Program" and expands eligibility to include students identified by scholarship organizations as having financial need, not just those meeting income thresholds (250% of federal poverty guidelines). The bill increases the annual scholarship limit to $8,000 per student and transfers program administration from the Department of Revenue to the State Treasurer. It also adds requirements for scholarship organizations, including financial reporting and bonding for larger contributions. The changes aim to broaden access to private school funding while centralizing oversight under the State Treasurer's office.
HB 2620 increases Kansas' earned income tax credit (EITC) by raising the state credit percentage from 17% to 18% of the federal EITC amount for tax years 2010-2012, then maintaining 17% for all subsequent years. It directly affects low-to-moderate-income Kansas residents who qualify for the federal EITC and claim it on their state tax returns. The bill modifies how the state credit is calculated (based on the federal credit amount) and ensures any excess credit beyond state tax liability is refunded to the taxpayer. This change updates Kansas law to align with the federal credit percentage, effective upon publication in the statute book.
HB 2645 extends a 60% tax credit for Kansas businesses and individuals who donate to community colleges or technical colleges for capital improvements, deferred maintenance, or technology/equipment purchases. The credit applies to contributions made between 2022 and 2031, allowing donors to reduce their state income tax liability by up to 60% of qualifying donations. Funds must be deposited into designated capital outlay or maintenance funds at the institutions, with strict rules ensuring they support specific infrastructure needs rather than new construction. This policy directly affects taxpayers who make eligible contributions to participating Kansas community colleges and technical colleges.
HB 2441 amends Kansas' income tax code to include compressed natural gas (CNG) and liquefied natural gas (LNG) as eligible alternative fuels for a tax credit program. This change directly affects Kansas taxpayers who purchase qualified alternative-fueled vehicles (like CNG trucks) or build fueling stations for these fuels, expanding the existing credit to cover CNG/LNG vehicles and infrastructure. The bill updates the legal definition of "alternative fuel" (Section e(1)(B)) to explicitly include CNG and LNG, allowing taxpayers to claim the same credit percentages (40% for post-2005 vehicles) previously available for other alternative fuels like ethanol blends. The credit applies to incremental vehicle costs or fueling station expenditures, with limits based on vehicle weight categories, and follows the existing carryover rules for unused credits.
HB 2541 creates a tax credit program for insurance companies that invest in certified rural funds, reducing their premium tax liability by 15% (after an initial two-year 0% period) for capital investments supporting eligible rural businesses. The program requires rural funds to apply to the Kansas Department of Commerce by October 2026, demonstrating prior investment in rural areas, submitting a business plan with job creation projections, and paying a $5,000 fee. Eligible businesses must be located outside cities over 50,000 residents or in specific industries (e.g., agriculture, manufacturing), have under 250 employees, and meet location criteria. The credit applies only to insurance companies, directly incentivizing their capital deployment into rural Kansas economic development.
SB 397 prevents Kansas homeowners from losing eligibility for homestead property tax refunds or the SAFESR tax credit if their home's value later exceeds $350,000 after qualifying in a previous year. It ensures that individuals who received these benefits in a year when their home value was under $350,000 retain eligibility for future years, even if the value rises above the threshold. The bill amends Kansas law to explicitly protect this eligibility, applying to tax years 2026 and beyond for those who qualified under prior years' conditions. It directly affects current and future recipients of these specific tax relief programs.
SB 402 modifies Kansas homestead property tax refund and SAFESR tax credit rules to better support seniors and homeowners. It establishes a fixed household income threshold ($25,380 for 2026+) for SAFESR eligibility instead of using federal poverty levels, prevents loss of eligibility if a homestead's appraised value later exceeds $350,000 after qualifying, and adds an exception for claimants forced to live away from their homestead due to health or hardship. The bill also standardizes the refund claim process by requiring a single form for all homestead tax refund claims. This directly affects Kansas residents aged 65+ who own and occupy their primary residence and qualify for these tax benefits.
