If enacted, HB2687 will amend the Kansas income tax act to introduce this new credit. The result will be that eligible families could receive a tax refund if the credit exceeds their tax liability. This provision is expected to help lower-income residents and could lead to significant financial relief for families struggling with economic challenges. Furthermore, the bill includes a provision for cost-of-living adjustments, ensuring that the income thresholds and credit amounts remain relevant over time.
Summary
House Bill 2687 aims to establish a child tax credit for individual taxpayers in Kansas. For the tax year 2024 and subsequent years, it proposes a credit for each qualifying child, with the amount varying according to the taxpayer's income. The bill sets out specific income thresholds, allowing credits ranging from $600 for individuals with a gross income of $0 to $25,000, to $25 for those earning over $350,000. This structured approach intends to provide more financial assistance to families with lower incomes while gradually reducing support as income increases.
Contention
There may be points of contention surrounding HB2687, particularly regarding its long-term fiscal impact on the state's budget. Opponents might argue that while the intention behind the credit is to assist families, it could also lead to substantial losses in state revenue. Additionally, there may be debates on how effectively the bill addresses the needs of families across different income levels and the equity of such tax credits compared to other forms of financial support.
Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.
Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.
Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.