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
January 27, 2023
The Honorable Jeff Longbine, Chairperson
Senate Committee on Financial Institutions and Insurance
300 SW 10th Avenue, Room 546-S
Topeka, Kansas 66612
Dear Senator Longbine:
SUBJECT: Fiscal Note for SB 37 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 37 is
respectfully submitted to your committee.
SB 37 would expand the transferability of tax credits issued under the Kansas Housing
Investor Tax Credit Act. The bill would allow that any portion of the tax credit that is carried
forward can also be transferred to another taxpayer. The bill would remove the current requirement
that a qualified investor cannot have a current tax liability at the time of their investment in a
qualified housing project or reasonably believe that they will not owe taxes in the current taxable
year to be able to transfer the tax credits to another taxpayer. The bill would allow that all or a
portion of the tax credit can be transferred by a qualified investor or any subsequent transferee,
and there would be no limit on the number of times a tax credit or any portion of a tax credit could
be transferred. The transferee would receive all remaining rights and restrictions for the tax credit
being transferred on the date of the transfer. The bill would apply to tax credits issued in tax year
2022 and all subsequent years.
Estimated State Fiscal Effect
FY 2023
SGF
FY 2023
All Funds
FY 2024
SGF
FY 2024
All Funds
Revenue -- -- -- --
Expenditure -- -- $42,780 $42,780
FTE Pos. -- -- -- --
The Honorable Jeff Longbine, Chairperson
Page 2—SB 37
The Department of Revenue indicates SB 37 would have fiscal effect on State General
Fund revenue. The bill would allow the Kansas Housing Investor Tax Credit to be transferred to
multiple taxpayers; however, the total amount of tax credits would still be capped at $13.0 million
per tax year.
The Department indicates that the bill would require $42,780 from the State General Fund
in FY 2024 to implement the bill and for additional information technology expenditures. The
required programming for this bill by itself would be performed by existing staff of the Department
of Revenue. In addition, if the combined effect of implementing this bill and other enacted
legislation exceeds the Department’s programming resources, or if the time for implementing the
changes is too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required. Any fiscal effect associated with SB 37 is not
reflected in The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
Bobbi Mariani, Insurance Department