Providing for transferability of Kansas housing investor tax credits from the year that the credit was originally issued.
Summary
SB 72 amends Kansas law governing the Kansas housing investor tax credit to clarify and expand how the credit may be transferred. The bill allows a qualified investor, project builder, developer, or later transferee to transfer all or part of the credit, and specifies that a transferred credit may be claimed beginning in the year the original cash investment was made. It also makes clear that credits may be carried forward for up to four succeeding taxable years, and that there is no limit on the number of times a credit may be transferred.
The bill retains the existing structure of the housing investor tax credit program, including annual credit caps, per-unit credit limits, and county-based allocation tiers. Credits remain available for qualified housing projects approved by the director, with annual statewide issuance capped at $13 million and minimum allocations reserved for smaller counties. The bill also applies the transferability changes retroactively to credits issued for tax year 2022 and later, and authorizes the secretary of revenue to adopt rules and regulations to administer the program.
Impact
SB 72 amends K.S.A. 2024 Supp. 79-32,313, which governs the Kansas housing investor tax credit, by changing the rules for transferability and retroactive use of credits. It affects income tax liability, privilege tax liability for certain financial institutions, and premium tax liability for insurance companies, because the credit may be applied against those taxes. The bill also preserves the existing credit limits, project eligibility rules, and county-based distribution requirements while making the credit more flexible and potentially more marketable to investors and developers.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears neutral to supportive. The measure is framed as a technical and programmatic adjustment to improve usability of an existing housing incentive rather than a major policy overhaul. The retroactive transferability language suggests an intent to benefit current credit holders and facilitate financing for housing projects.
Contention
The main point of potential contention is the retroactive application of the transferability change to credits issued for tax year 2022 and later, which could raise questions about administrative complexity or unintended fiscal effects. Another possible issue is whether making credits freely transferable, with no limit on the number of transfers, could reduce state revenue more than the current structure or create opportunities for secondary-market trading. No specific opposing viewpoints, amendments, or recorded disputes were provided in the available committee or vote history.