Providing for transferability of Kansas housing investor tax credits from the year that the credit was issued.
Impact
By amending existing laws regarding housing investor tax credits, HB2832 aims to stimulate investment in housing sectors, thereby potentially leading to improved housing availability in Kansas, especially in smaller counties. The tax credits are tiered based on county population, allowing up to $35,000 per residential unit in less populated areas, and $30,000 for others. This structured incentive may attract more investors to participate in housing developments, which could have a positive impact on local economies and housing markets.
Summary
House Bill 2832 is an act concerning income taxation in Kansas, specifically addressing the transferability of Kansas housing investor tax credits. This bill allows qualified investors who make cash investments in approved housing projects to claim tax credits against their income tax liability. The primary goal of the bill is to enhance the availability of affordable housing by allowing the associated tax credits to be transferable among investors, thereby potentially increasing investment in housing projects across the state.
Contention
The introduction of the bill has sparked discussions regarding the efficacy and implications of transferable tax credits. Proponents argue that making these credits transferable increases the appeal of investing in housing projects, potentially leading to a higher quantity and quality of housing developments. However, there may be concerns among legislators about the sustainability of such tax credit programs and their long-term effects on state revenues and budget allocations. Critics may argue that the focus on transferability could detract from direct investments in particularly underserved areas, leading to unequal development across the state.
Extending the number of years that tax credits may be issued or earned for contributions to graduates of aerospace and aviation-related educational programs and employers of program graduates, the tax credits for contributions to the Eisenhower foundation and friends of cedar crest association and the sunset for the angel investor tax credit and providing for a minimum amount of such credits for investments in counties with a population of 50,000 or fewer.
Decreasing individual income tax rates, discontinuing tax credits of the high performance incentive program and the Kansas affordable housing tax credit act, discontinuing payroll withholding tax benefits of the promoting employment across Kansas act, discontinuing the crediting of certain amounts to the job creation program fund and repealing certain tax credits.
Repealing or discontinuing certain income tax credit incentives, extending the income tax credit for angel investors and aviation-related employment and providing expanded options in the high performance tax credit program for tax credit transfers.
Relating to housing code requirements, removing the definition of apartment houses from chapter 31 of the Kansas Statutes Annotated, providing requirements for adoption of the international fire code, 2024 edition, and providing that certain state accessibility standards are not applicable to moderate income housing program and Kansas investor tax credit housing act projects.
Establishing the endow Kansas tax credit act to provide tax credits for endowment gifts to certain endowment funds held by qualified community foundations.