Kansas House Bill HB2275

Kansas 2023-2024 Regular Session

• Introduced: 2/2/23
• Refer: 2/2/23
• Report Pass: 2/15/23
• Refer: 2/23/23
• Refer: 3/1/23
• Report Pass: 3/7/23
• Engrossed: 4/3/23
• Refer: 4/4/23
• Failed: 4/30/24

Caption

Increasing the maximum amount of yearly income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 of eligible purchases available for such credit and further defining qualifying vendors and employees eligible for the credit, establishing a grant program to facilitate transitions by employers to minimum wage employment for persons with disabilities and creating the Kansas sheltered workshop transition fund.

Impact

The implementation of HB 2275 is anticipated to encourage more employers to participate in initiatives that facilitate the employment of individuals with disabilities, thereby fostering a more inclusive job market. The bill defines 'qualified vendors' and eligibility for the tax credits, which is aimed at businesses that not only hire individuals with disabilities but also contribute to their health insurance costs. By making these credits available for a longer period and increasing their amount, the bill could significantly impact the employment landscape in Kansas, promoting better economic participation among individuals with disabilities.

Summary

House Bill 2275 aims to increase the maximum yearly amount of income tax credits available for expenditures made under the disability employment act for purchases from qualified vendors. The bill extends these credits beyond the tax year 2023, providing ongoing financial support for businesses that operate within this framework. Specifically, the tax credit, currently set at 15% of the expenditures, would allow businesses to claim up to $500,000 per qualified vendor per tax year, with a cumulative cap of $10 million for each consecutive five-tax-year period starting 2024. This structure is designed to incentivize businesses to hire and integrate individuals with disabilities into the workforce.

Contention

While HB 2275 received unanimous support during the voting process, discussions surrounding the bill may hint at underlying concerns about its long-term sustainability and efficacy. Critics may argue about the adequacy of the support provided and whether the bill will result in meaningful employment gains for individuals with disabilities or become just a financial tool for businesses. Also, the legislative clarity regarding the definitions of 'qualified vendors' and 'integrated setting' may lead to debates about compliance and the effectiveness of the monitoring mechanisms put in place by the Secretary of Commerce.