Discontinuing the Kansas affordable housing tax credit for qualified developments receiving a 4% federal tax credit.
Impact
The findings from the bill indicate a significant change in the landscape of affordable housing in Kansas. By eliminating the tax credit, the state may find it more challenging to incentivize the construction and maintenance of affordable housing units. The tax credit has been a vital resource for encouraging developers to invest in housing projects that cater to lower-income families. As funding mechanisms for such initiatives would change, local economies and housing markets may feel the ramifications of this bill in the years to come, potentially resulting in increased housing costs or reduced availability of affordable units.
Summary
House Bill 2119 proposes the discontinuation of the Kansas affordable housing tax credit act effective July 1, 2025. This legislation will end the tax credits allocated for developments designed to provide affordable housing options in the state, impacting both developers and low-income residents who rely on such initiatives. The bill aims to amend existing tax code provisions, thereby restructuring how affordable housing developments are funded and supported in Kansas. This measure signifies a shift in the state's approach to managing housing affordability and resources dedicated to housing initiatives.
Contention
Discussion surrounding HB 2119 may highlight notable points of contention between various stakeholders. Proponents of the bill may argue that it is necessary to refocus funding and resources toward other pressing needs within the state budget, suggesting that tax credits might not efficiently address housing shortages. In contrast, detractors, including housing advocates and developers, could assert that discontinuation of the tax credit would exacerbate housing insecurity for vulnerable populations and diminish efforts to address the affordable housing crisis in Kansas. The legislative session will likely reflect differing opinions on the role of state incentives in fostering affordable housing development.
Decreasing the corporate income tax rate, discontinuing tax credits of the high performance incentive program and payroll withholding tax benefits of the promoting employment across Kansas act and repealing certain unused tax credits.
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.
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.
Enacting the Kansas film and digital media industry production development act, providing a tax credit, sales tax exemption and loans and grants to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas, requiring the secretary of commerce to issue reports on the economic impact, providing sales tax exemptions for purchases by a certain community theaters and purchases and sales made by the friends of cedar crest association and establishing an income, privilege and premium tax credit for employers that employ members of the Kansas army and air national guard and establishing an income tax credit for employees that are members thereof.
Increasing the maximum amount of yearly income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 of eligible purchases available for such credit and further defining qualifying vendors and employees eligible for the credit, establishing a grant program to facilitate transitions by employers to minimum wage employment for persons with disabilities and creating the Kansas sheltered workshop transition fund.