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.
HB 2757 is a broad tax incentive cleanup and extension bill. It repeals or sunsets a long list of income tax credits and related deductions, most of which are tied to specific industries or activities, including agritourism liability insurance, alternative fuel vehicles and fueling stations, assistive technology contributions, biomass-to-energy property, disabled access improvements, employer health insurance contributions, environmental compliance, regional foundation contributions, petroleum refinery compliance, swine facility improvements, abandoned well plugging, and carbon dioxide capture and sequestration deductions. Many of these provisions are already limited to corporate taxpayers and are scheduled to end after tax year 2025; the bill makes those expirations explicit and removes the underlying statutory sections.
At the same time, the bill preserves or expands a few targeted incentives. It extends the angel investor credit and the aviation-related employment credit, and it revises the high performance incentive program to allow more flexibility for tax credit transfers and wage qualification rules, especially for rural businesses. It also updates the job expansion and investment credit act to allow partial transferability of certain credits, and in some cases broader transfer rights for employee-owned S corporations beginning in 2026.
The bill’s impact on Kansas law is substantial because it deletes or phases out many existing tax credit statutes and deductions, while leaving a smaller set of incentives in place for longer. It would reduce the number of active tax preference programs, simplify the tax code by repealing obsolete or expiring provisions, and alter eligibility, transferability, and wage standards for the remaining economic development credits. Affected parties include agritourism operators, farmers, oil and gas well owners, refinery operators, manufacturers, businesses making accessibility improvements, investors in Kansas startups, and firms participating in state economic development programs.
The general sentiment reflected by the bill’s sponsorship is pro-business and reform-oriented. It was requested on behalf of the Kansas Chamber of Commerce, which suggests support for streamlining the tax code and preserving incentives viewed as economically useful. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of floor or committee debate in the supplied materials, but the structure of the bill indicates an intent to consolidate and modernize incentives rather than eliminate all business tax relief.
The main points of contention are likely to center on which credits are repealed versus extended, and whether ending certain industry-specific incentives will harm affected sectors. Businesses and taxpayers benefiting from the repealed credits may oppose the bill because it removes credits for compliance costs, insurance, environmental upgrades, and rural development contributions. Supporters are likely to argue that many of these credits are outdated, duplicative, or too narrow, while opponents may focus on the loss of targeted support for agriculture, energy, accessibility, and rural economic development.
HB 2757 would repeal numerous sections of the Kansas Statutes Annotated governing income tax credits, deductions, and related property tax exemptions, while amending a smaller number of remaining incentive programs. It would end or discontinue several tax preferences after tax year 2025, limit some credits to corporate taxpayers, and revise the rules for transferability and wage requirements under the high performance incentive and job expansion credit programs. The bill would therefore narrow the universe of available state tax incentives and change how certain economic development credits are claimed, transferred, and certified.
The bill appears generally favorable to business and tax-code simplification, especially from the perspective of the Kansas Chamber of Commerce, which requested the legislation. Its design suggests support for keeping a few high-priority incentives, such as angel investor and aviation-related employment credits, while eliminating a larger set of narrower or expiring credits. No committee testimony or vote history was provided, so the record here does not show direct opposition or support from legislators, but the policy direction is clearly reform-oriented rather than expansionary.
Likely contention would arise over the repeal of credits tied to specific industries and compliance costs, including agritourism, alternative fuels, accessibility improvements, refinery environmental compliance, swine facility upgrades, abandoned well plugging, and carbon capture. Affected businesses and taxpayers may argue these credits encourage investment, safety, environmental compliance, and rural development, while supporters may contend they are outdated, inefficient, or too fragmented. Another likely point of debate is the bill’s expansion of transferability and revised wage rules in the high performance incentive program, which may be welcomed by some rural businesses but questioned by those concerned about reduced guardrails or fiscal cost.