Kansas 2025-2026 Regular Session

Kansas House Bill HB2289

Introduced
2/5/25  
Refer
2/5/25  
Report Pass
2/14/25  
Engrossed
2/25/25  
Refer
2/26/25  
Report Pass
3/5/25  
Enrolled
4/11/25  

Caption

Limiting and discontinuing the Kansas affordable housing tax credit and expanding transferability of Kansas housing investor tax credits.

Impact

The modification in the bill is likely to have a significant impact on low-income and affordable housing development in Kansas. By eliminating the tax credits for qualified developments that receive the lesser 4% federal tax credits, the bill may discourage development in markets that are traditionally more resource-strapped. However, the continuation of support for developments eligible for 9% federal tax credits, at least until the 2028 cut-off, recognizes and supports higher levels of investment necessary for sustainable affordable housing projects.

Summary

House Bill 2289 seeks to amend the Kansas affordable housing tax credit act by discontinuing credits for certain qualified developments, specifically those receiving a 4% federal tax credit. Importantly, the bill limits the aggregate amount of such credits and establishes a sunset provision that discontinues all credits after the 2028 qualified allocation plan. This significant adjustment aims to refine the structure of tax incentives related to affordable housing in Kansas.

Sentiment

Discussions involving HB 2289 are polarized, with supporters emphasizing the need for a more sustainable and focused approach to how tax credits are allocated and utilized in the realm of affordable housing. Proponents argue that the bill will streamline tax incentives and foster better housing opportunities by creating a more effective credit allocation system. Conversely, opponents worry that the bill may hinder efforts to develop affordable housing in smaller markets by removing essential funding mechanisms, especially in rural areas where development costs remain high, and tax incentives are crucial.

Contention

Key points of contention surrounding HB 2289 include the fairness of discontinuing credits for the 4% developments, which are vital for lower-income housing initiatives. Critics argue that while the intention is to simplify and strengthen the overall housing tax credit framework, the approach may inadvertently limit housing accessibility for those who need it most. The debate highlights the challenge of balancing fiscal responsibility with the urgent need for adequate affordable housing across Kansas.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SCR1602

Approving the creation of a port authority in Wyandotte County Kansas.

KS SCR1604

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for real property and personal property mobile homes.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SCR1603

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for residential property.

KS SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales tax.

KS SR1702

A resolution honoring the life, career and trailblazing achievements of Kansas icon Ed Dwight.

Similar Bills

No similar bills found.