SESSION OF 2025
CONFERENCE COMMITTEE REPORT BRIEF
HOUSE BILL NO. 2289
As Agreed to April 11, 2025
Brief*
HB 2289 would make changes to the Kansas Affordable Housing Tax Credit and Kansas
Housing Investor Tax Credit programs and provide for the incremental discontinuation of the
Kansas Affordable Housing Tax Credit Program.
Kansas Affordable Housing Tax Credit
The bill would discontinue the Kansas Affordable Housing Tax Credit match for qualified
developments receiving a 4 percent federal low-income housing credit subsequent to the 2025
Qualified Allocation Plan. The bill would also limit the match for qualified developments receiving
a 9 percent federal credit to $8.8 million annually beginning in 2026 and discontinue the match
subsequent to the 2028 Qualified Allocation Plan.
The total amount of credits awarded for either match amount would be limited to $25.0
million for the 2025 plan year.
[Note: The Qualified Allocation Plan governs how the low-income housing tax credits are
awarded and is reviewed by the Kansas Housing Resources Corporation (KHRC) annually.]
Any such credit awarded for a plan year would continue to apply through the credit period
and any applicable carry-forward period.
Kansas Housing Investor Tax Credit
The bill would provide, retroactive to tax year 2022, that tax credits under the Kansas
Housing Investor Tax Credit Act could be claimed by transferees of the credit beginning in the
year in which the qualifying investment for the credit was made.
[Note: Current law allows transferees to begin claiming the credits in the year in which the
credits are transferred.]
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*Conference committee report briefs are prepared by the Legislative Research Department and do not express
legislative intent. No summary is prepared when the report is an agreement to disagree. Conference committee
report briefs may be accessed on the Internet at https://klrd.gov/
1 - 2289 Conference Committee Action
The Conference Committee agreed to remove the contents of HB 2289, pertaining to
personalized license plates, and to insert the provisions of:
●HB 2119, as amended by the Senate Committee on Commerce, and as further
amended to:
○Limit the annual total amount of credits awarded in the 2025 plan year to $25.0
million;
○Limit the annual total amount of credits awarded each plan year subsequent to
2025 to $8.8 million; and
○Discontinue the Affordable Housing Tax Credit Program subsequent to the 2028
Qualified Allocation Plan; and
●HB 2096, as passed by the House.
Background
The Conference Committee report contains provisions from HB 2219 and HB 2096.
Background information for each bill is provided below.
HB 2119 (Kansas Affordable Housing Tax Credit)
The bill was introduced by House Committee on Commerce, Labor and Economic
Development at the request of Representative Tarwater.
House Committee on Commerce, Labor and Economic Development
In the House Committee hearing, Opponent testimony was provided by representatives of
the City of Topeka, Advance Capital, Kansas Action for Children, Kansas Bankers Association,
Kansas Economic Development Alliance, Kansas Housing Association, Kansas Interfaith Action,
Sugar Creek Capital, The Prime Company, and United Community Services of Johnson County.
The opponents generally stated the bill would reduce the amount of housing being built in
Kansas and the associated jobs and would hinder workforce development.
Written-only opponent testimony was provided by representatives of the cities of Garden
City, Lawrence, and Salina; AMD Partners; Boutique Retirement Clubs; Commonwealth
Development Corporation of America; Community Housing of Wyandotte County; EmberHope;
Enterprise Community Partners; Health Forward Foundation; Hutchinson/Reno County
Chamber of Commerce; Jones Gilliam Renz Architects, Inc.; Kansas Statewide Homeless
Coalition; Lawrence Chamber of Commerce; Lawrence-Douglas County Public Health; LISC
Greater Kansas City; Marian Group; MCP Group; Mennonite Housing; Overland Construction
Group; Overland Property Group; Raymond James; Red Stone Equity Partners; Salina
Chamber of Commerce; SENT, Inc.; Southwest Kansas Coalition; Thrive Allen County; and
Wheatland Investments Group; and by a private citizen.
2 - 2289 Neutral testimony was provided by representatives of the KHRC and League of Kansas
Municipalities. The testimony generally stated the bill as introduced would take away credits that
have been awarded.
No other testimony was provided.
The House Committee amended the bill to include the credits awarded under the 2025
Qualified Allocation Plan.
Senate Committee on Commerce
In the Senate Committee hearing, opponent testimony was provided by representatives of
American Institute of Architects, Kansas Chapter; Kansas Action for Children; Kansas
Economic Development Alliance; Kansas Housing Association; and Sugar Creek Capital,
and by a private citizen. The opponents generally stated the Affordable Housing Tax credit is an
essential tool for making affordable housing available within Kansas in addition to generating
substantial economic activity that also benefits the state.
Written-only opponent testimony was provided by representatives of Advantage Capital;
City of Topeka; Health Forward Foundation; Johnson County, Kansas, and Johnson County
Board of County Commissioners; Kansas Association of Realtors; Kansas Interfaith Action;
Kansas Statewide Homeless Coalition; Lawrence Chamber of Commerce; and United
Community Services of Johnson County.
Neutral testimony was provided by a representative of the KHRC.
No other testimony was provided.
The Senate Committee amended the bill to remove discontinuation of the credit for
developments receiving a 9 percent federal tax credit.
HB 2096 (Kansas Housing Investor Tax Credit)
The bill was introduced by the House Committee on Taxation at the request of a
representative of Friends of Historic Preservation.
House Committee on Taxation
In the House Committee hearing, proponent testimony was provided by representatives of
Friends of Historic Preservation, Frontier Development Group, and Kansas Bankers
Association. The proponents generally stated the current provision for transferability results in
one year in which the credits that could be claimed being lost, causing the credits to have less
value.
Written-only proponent testimony was provided by representatives of Commerce Bank and
Kansas Association of Realtors.
No other testimony was provided.
3 - 2289 Fiscal Information
HB 2119 (Kansas Affordable Housing Tax Credit)
A revised fiscal note on HB 2119, as amended by the House Committee on Taxation, was
not immediately available.
HB 2096 (Kansas Housing Investor Tax Credit)
According to the fiscal note prepared by the Division of the Budget on HB 2096, the
Department of Revenue indicates enactment of the bill would have no fiscal effect.
Taxation; tax credits; Kansas Housing Investor Tax Credit; transferability; Kansas Affordable Housing Tax Credit; sunset
ccrb_hb2289_01_04119am.odt
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