Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
February 9, 2023
The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2275 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2275 is
respectfully submitted to your committee.
Under current law, purchases from a qualified vendor tax credits are limited to a total of
$5.0 million in tax credits for tax year 2019 through tax year 2023 and the tax credit would sunset
after tax year 2023. HB 2275 would eliminate the sunset date and allow a total of $10.0 million
in tax credits to be claimed in tax year 2024 through tax year 2029 and allow a total of $10.0
million in tax credits to be claimed in future five tax year blocks. The bill would cite the statute
that includes this tax credit as the Disability Employment Act. This would merge the definition of
“certified business” and “qualified vendor” and modify the requirements for how a business can
become a qualified vendor.
The Department of Revenue estimates that HB 2275 would decrease State General Fund
revenues by $500,000 in tax year 2024 or FY 2025. The Department estimates that a similar
reduction of State General Fund revenue would occur in future tax years. To formulate these
estimates, the Department of Revenue reviewed data on credits claimed from the purchases from
qualified vendor tax credits, which show that approximately $500,000 in credits are claimed each
year. However, the bill limits the amount of tax credits that could be claimed to $10.0 million over
the five-year period of tax year 2024 through tax year 2029, and each subsequent five-year period.
The Department of Revenue and the Department of Commerce indicate that the
administrative costs associated with implementing the bill would be negligible and could be The Honorable Sean Tarwater, Chairperson
Page 2—HB 2275
absorbed within existing resources. Any fiscal effect associated with HB 2275 is not reflected in
The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
Sherry Rentfro, Department of Commerce