Kansas House Bill HB2044

Kansas 2025-2026 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25
• Report Pass: 2/4/25
• Engrossed: 2/7/25
• Refer: 2/10/25
• Report Pass: 3/11/25
• Enrolled: 4/10/26

Caption

Providing a income tax subtraction modification for amounts received as compensation for serving in the armed forces and providing that a person shall not lose eligibility for a homestead property tax refund claim or the selective assistance for effective senior relief (SAFESR) income tax credit if the appraised valuation of the homestead subsequently exceeds $350,000 after qualifying in a previous tax year.

Summary

HB2044 makes two primary policy changes to Kansas tax law. First, it creates a new Kansas income tax subtraction modification for certain compensation received for serving in the armed forces, beginning in tax year 2027. The subtraction is limited to compensation up to the amount paid to a senior enlisted member of the armed forces as set by the U.S. Department of Defense, and the bill defines covered compensation broadly to include pay, bonuses, and reimbursements. Second, it revises the homestead property tax refund act so that a taxpayer who previously qualified for a homestead refund or the SAFESR tax credit does not lose future eligibility solely because the appraised valuation of the homestead later rises above $350,000, so long as the taxpayer otherwise meets the program requirements. The bill amends Kansas adjusted gross income provisions in K.S.A. 79-32,117 by adding the armed-forces compensation subtraction to the long list of state income tax additions and subtractions. It also amends K.S.A. 79-4522 to change how the $350,000 valuation cap applies to homestead refund claims and the SAFESR credit. Under the new rule, the valuation cap still bars first-time claims above $350,000, but prior recipients can continue to qualify in later years even if their home value increases beyond that threshold. The bill also makes conforming repeals of the prior versions of the amended statutes. The overall sentiment reflected in the voting history was strongly favorable. The House passed the bill 105-9, the Senate passed it unanimously 40-0, and both chambers later adopted the conference committee report with overwhelming support. That voting pattern suggests broad bipartisan agreement on both the military-related tax relief and the homestead eligibility protection for seniors and other qualifying homeowners. The main policy points of interest are the scope and timing of the armed-forces tax subtraction and the treatment of the homestead valuation threshold. The armed-forces provision is prospective and capped, which limits the revenue impact while still providing targeted relief to service members. The homestead change is also targeted, preserving benefits for existing recipients even if rising property values would otherwise disqualify them. No committee transcript was provided, so there is no recorded debate to identify additional objections, but the only likely areas of contention would be the fiscal cost of the new subtraction and whether the homestead rule should continue to apply after property values exceed the statutory cap.

Impact

HB2044 changes Kansas income tax law by adding a new subtraction modification for qualifying military compensation and by expanding continued eligibility for homestead property tax refunds and the SAFESR income tax credit after a home’s appraised value rises above $350,000. It affects individual taxpayers, especially active-duty service members and current homestead/SAFESR recipients, and it amends K.S.A. 79-32,117 and K.S.A. 79-4522 while repealing the prior versions of those sections.

Sentiment

The bill appears to have been broadly supported and noncontroversial in final votes. It passed the House 105-9, the Senate 40-0, and both chambers later adopted the conference committee report with near-unanimous support. That pattern indicates strong bipartisan approval for the bill’s military tax relief and its protection for existing homestead and SAFESR beneficiaries.

Contention

No committee transcripts were provided, so there is no direct record of debate or specific objections. Based on the bill’s structure, the most likely points of contention would be the revenue effect of creating a new subtraction for armed-forces compensation and the policy choice to allow continued homestead and SAFESR eligibility even after a property’s appraised value exceeds $350,000. Any concerns would likely come from fiscal conservatives or those focused on program eligibility limits, while supporters would include advocates for veterans, active-duty service members, seniors, and homeowners facing rising property values.