Kansas Senate Bill SB429

Kansas 2025-2026 Regular Session

• Introduced: 1/30/26
• Refer: 2/2/26
• Report Pass: 2/16/26

Caption

Extending the sunset for the angel investor tax credit to 2031.

Summary

SB 429 extends Kansas’s angel investor tax credit program by moving its sunset date from tax year 2026 to tax year 2031. The bill preserves the existing structure of the credit, which allows an income tax credit for cash investments in qualified securities of qualified Kansas businesses, and keeps the credit rate at up to 50% of the investment for tax year 2021 and later, subject to existing caps and limitations. It also updates the annual statewide credit cap schedule so that the program can continue issuing credits through tax year 2031, with the annual cap set at $8 million for tax year 2026 and each year thereafter through 2031. The bill also retains the current rules for carryforwards, transferability for investors without current tax liability, and reimbursement of administrative costs through fees. In practical terms, it continues a state tax incentive designed to encourage private investment in Kansas startups and other qualified Kansas businesses by reducing investor tax liability and allowing some credits to be transferred when the original investor cannot use them. The bill’s impact on state law is limited but important: it amends K.S.A. 2025 Supp. 74-8133 to extend the life of the angel investor tax credit program and conform the annual credit limits to the new sunset date. It repeals the prior version of the statute and replaces it with the updated timeline, while leaving the core eligibility, credit calculation, and administration provisions intact. The affected parties are angel investors, qualified Kansas businesses seeking capital, and the Kansas Department of Revenue, which administers the program. Based on the available record, the general sentiment appears neutral to supportive, with the bill presented as a straightforward extension of an existing economic development incentive. There are no recorded committee transcripts or votes in the provided materials, so no formal opposition or debate is documented here. The main policy question implied by the bill is whether Kansas should continue subsidizing private investment in businesses through tax credits for another five years. The most notable point of contention, though not reflected in the provided discussion record, would typically be the cost and effectiveness of the tax credit versus its economic development benefits. Supporters would likely emphasize access to capital for startups and small businesses, while critics might question whether the program produces enough new investment or job growth to justify the foregone tax revenue.

Impact

SB 429 amends Kansas’s angel investor tax credit statute, K.S.A. 2025 Supp. 74-8133, to extend the program’s sunset from tax year 2026 to tax year 2031 and to continue the annual statewide credit authorization through that period. It preserves the existing 50% credit structure, investment caps, transferability rules, and administrative fee provisions, while keeping the program available to investors in qualified Kansas businesses and the Kansas Department of Revenue as administrator.

Sentiment

The available materials suggest a generally supportive or at least noncontroversial posture toward the bill. It is framed as a routine extension of an existing economic development incentive, and there are no committee transcripts or recorded votes in the provided context indicating organized opposition. The absence of debate records limits any stronger conclusion, but the bill appears to have been treated as a continuation of current policy rather than a major policy shift.

Contention

No specific contention is documented in the provided transcripts or vote history. The likely policy divide, if raised, would be between supporters who view the angel investor credit as a useful tool for attracting capital to Kansas businesses and critics who may question the fiscal cost, the effectiveness of tax credits as an economic development strategy, or whether the benefits are concentrated among a narrow group of investors and firms.