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.
Expanding the use of bond proceeds under the Kansas rural housing incentive district act, the transferability of income, privilege and premium tax credits issued under the Kansas housing investor tax credit act and enacting the Kansas urban housing incentive district act.
Expanding the use of bond proceeds under the Kansas reinvestment housing incentive district act and the transferability of income, privilege and premium tax credits issued under the Kansas housing investor tax credit act.
House Substitute for SB 37 by Committee on Financial Institutions and Pensions - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.
Decreasing individual income tax rates, discontinuing tax credits of the high performance incentive program and the Kansas affordable housing tax credit act, discontinuing payroll withholding tax benefits of the promoting employment across Kansas act, discontinuing the crediting of certain amounts to the job creation program fund and repealing certain tax credits.
House Substitute for SB 37 by Committee on Financial Institutions and Pensions - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.
Expanding the use of bond proceeds under the Kansas rural housing incentive district act, the transferability of income, privilege and premium tax credits issued under the Kansas housing investor tax credit act and enacting the Kansas urban housing incentive district act.