Kansas House Bill HB2832

Kansas 2023-2024 Regular Session

• Introduced: 3/12/24
• Refer: 3/12/24
• Failed: 4/30/24

Caption

Providing for transferability of Kansas housing investor tax credits from the year that the credit was issued.

Impact

By amending existing laws regarding housing investor tax credits, HB2832 aims to stimulate investment in housing sectors, thereby potentially leading to improved housing availability in Kansas, especially in smaller counties. The tax credits are tiered based on county population, allowing up to $35,000 per residential unit in less populated areas, and $30,000 for others. This structured incentive may attract more investors to participate in housing developments, which could have a positive impact on local economies and housing markets.

Summary

House Bill 2832 is an act concerning income taxation in Kansas, specifically addressing the transferability of Kansas housing investor tax credits. This bill allows qualified investors who make cash investments in approved housing projects to claim tax credits against their income tax liability. The primary goal of the bill is to enhance the availability of affordable housing by allowing the associated tax credits to be transferable among investors, thereby potentially increasing investment in housing projects across the state.

Contention

The introduction of the bill has sparked discussions regarding the efficacy and implications of transferable tax credits. Proponents argue that making these credits transferable increases the appeal of investing in housing projects, potentially leading to a higher quantity and quality of housing developments. However, there may be concerns among legislators about the sustainability of such tax credit programs and their long-term effects on state revenues and budget allocations. Critics may argue that the focus on transferability could detract from direct investments in particularly underserved areas, leading to unequal development across the state.