As Amended by Senate Committee
Session of 2025
SENATE BILL No. 69
By Committee on Assessment and Taxation
1-23
AN ACT concerning economic development; relating to rural opportunity
zones; extending the time period for eligibility for the loan repayment
program and the income tax credit; adding down payment assistance
and child care reimbursement as program benefit options; expanding
eligibility for the income tax credit; amending K.S.A. 2024 Supp. 74-
50,223 and 79-32,267 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 74-50,223 is hereby amended to read as
follows: 74-50,223. (a) Any county that has been designated a rural
opportunity zone pursuant to K.S.A. 74-50,222, and amendments thereto,
may participate in the program provided in this section by authorizing such
participation by the county commission of such county through a duly
enacted written resolution. Such county shall provide a certified copy of
such resolution to the secretary of commerce on or before January 1, 2012,
for calendar year 2012, or on or before January 1 for each calendar year
thereafter, in which a county chooses to participate. Such resolution shall
obligate the county to participate in the program provided by this section
for a period of five years, and shall be irrevocable. Such resolution shall
specify the maximum amount of outstanding student loan balance for each
resident individual to be repaid as provided in subsection (b), except that
the maximum amount of such balance shall be $15,000.
(b) If a county submits a resolution as provided in subsection (a),
under the program provided in this section, subject to subsection (d), the
state of Kansas and such county which that chooses to participate as
provided in subsection (a), shall agree to pay in equal shares the
outstanding student loan balance of any resident individual who qualifies
to have such individual's student loans repaid under the provisions of
subsection (c) over a five-year period, except that the maximum amount of
such balance shall be $15,000. The amount of such repayment shall be
equal to 20% of the outstanding student loan balance of the individual in a
year over the five-year repayment period. The state of Kansas is not
obligated to pay the student loan balance of any resident individual who
qualifies pursuant to subsection (c) prior to the county submitting a
resolution to the secretary pursuant to subsection (a). Each such county
shall certify to the secretary that such county has made the payment
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required by this subsection.
(c) Except as provided in subsection (h), a resident individual shall
be entitled to have such individual's outstanding student loan balance paid
for attendance at an institution of higher education where such resident
individual earned an associate, bachelor or post-graduate degree under the
provisions of this section when such resident individual establishes
domicile in a county designated as a rural opportunity zone which that
participates in the program as provided in subsection (a), on and after the
date in which such county commenced such participation, and prior to July
1, 2026 2031. Such resident individual may enroll in this program in a
form and manner prescribed by the secretary. Subject to subsection (d),
once enrolled such resident individual shall be entitled to full participation
in the program for five years, except that if the resident individual
relocates outside the rural opportunity zone for which the resident
individual first qualified, such resident individual forfeits such individual's
eligibility to participate, and obligations under this section of the state and
the county terminate. No resident individual shall enroll and be eligible to
participate in this program after June 30, 2026 2031.
(d) The provisions of this act shall be subject to appropriation acts.
Nothing in this act guarantees a resident individual a right to the benefits
provided in this section. The county may continue to participate even if the
state does not participate.
(e) (1) Commencing on January 1, 2026, the rural opportunity zone
program shall include two additional benefit options: (A) Down payment
assistance; and (B) child care reimbursement. Any county that meets the
definition of a rural opportunity zone pursuant to K.S.A. 74-50,222, and
amendments thereto, may participate in the program benefits provided in
this subsection by authorizing such participation by the county
commission of such county through a duly enacted written resolution.
Such county shall provide a certified copy of such resolution to the
secretary of commerce on or before January 1, 2026, for calendar year
2026, or on or before January 1 for each calendar year thereafter, in
which a county chooses to participate in one or both of the benefits.
Such resolution shall be irrevocable and shall obligate the county to
participate in the child care reimbursement provided by this subsection
for a period of five years if the county participates in such benefit. Such
resolution shall specify the maximum amount of down payment
assistance or child care reimbursement for each resident individual to be
paid as provided in paragraph (2) or (3), except that the maximum
amount of each such benefit shall not exceed $15,000.
(2) If a county submits a resolution to participate in the down
payment assistance benefit as provided in paragraph (1), subject to
subsection (d), the state of Kansas and such county shall agree to
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contribute to the down payment, in equal shares, an amount of up to 3%
of the purchase price for the purchase of a residence within such county
by a resident individual who qualifies under subsection (f) and is a first-
time homebuyer, except that the maximum amount of such down
payment assistance shall not exceed $15,000. The state of Kansas is not
obligated to pay a portion of the down payment of any resident
individual who qualifies pursuant to subsection (f) prior to the county
submitting a resolution to the secretary pursuant to subsection (e). Each
such county shall certify to the secretary that such county has made the
payment required by this paragraph.
(3) If a county submits a resolution to participate in the child care
reimbursement benefit as provided in paragraph (1), subject to
subsection (d), the state of Kansas and such county shall agree to pay in
equal shares reimbursement of child care expenses paid for a dependent
child or children during the year by a resident individual who qualifies
under the provisions of subsection (f), except that the maximum amount
of such reimbursement shall not exceed $15,000 over a five-year period,
or $3,000 per year. The state of Kansas is not obligated to pay a portion
of the reimbursement of any resident individual who qualifies pursuant
to subsection (f) prior to the county submitting a resolution to the
secretary pursuant to subsection (e). Each such county shall certify to
the secretary that such county has made the payment required by this
paragraph.
(f) Except as provided in subsection (h), a resident individual shall
be entitled to down payment assistance or child care reimbursement
under the provisions of this section if such resident individual
establishes domicile in a county designated as a rural opportunity zone
that participates in the program as provided in subsection (e) on and
after the date that such county commenced such participation and prior
to July 1, 2031. Such resident individual may enroll in this program in a
form and manner prescribed by the secretary. Subject to subsection (d),
once enrolled, such resident individual enrolled in the child care
reimbursement benefit shall be entitled to full participation in the
program for five years, except that if the resident individual relocates
outside the rural opportunity zone for which the resident individual first
qualified, such resident individual forfeits such individual's eligibility to
participate, and obligations under this section of the state and the county
terminate. No resident individual shall enroll and be eligible to
participate in this program after June 30, 2031.
(g) The county's share of any benefit pursuant to this section may
be paid by the county, the employer of the individual, any municipality
or political subdivision within the county or any other organization,
business, group or individual, or any combination thereof, if so
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authorized by the county.
(h) A county may participate in one, two or all three of the program
benefits pursuant to subsections (a) and (e), but an eligible resident
individual may only receive benefits pursuant to one such program
benefits offered by the county.
(i) The secretary shall adopt rules and regulations necessary to
administer the provisions of this section.
(f)(j) On January 1, 2012, and annually thereafter until January 1,
2027 2032, the secretary of commerce shall report to the senate committee
on assessment and taxation and the house of representatives committee on
taxation as to how many residents applied for the rural opportunity zone
tax credit.
Sec. 2. K.S.A. 2024 Supp. 79-32,267 is hereby amended to read as
follows: 79-32,267. (a) For taxable years commencing after December 31,
2011, and before January 1, 2027 2032, there shall be allowed as a credit
against the tax liability of a resident individual taxpayer an amount equal
to the resident individual's income tax liability under the provisions of the
Kansas income tax act, when the resident individual:
(1) (A) Establishes domicile in a rural opportunity zone on or after
July 1, 2011, and prior to January 1, 2026 2031, and was domiciled outside
this state for five or more years immediately prior to establishing their
domicile in a rural opportunity zone in this state;
(2)(B) had Kansas source income less than $10,000 in any one year
for five or more years immediately prior to establishing their domicile in a
rural opportunity zone in this state; and
(3)(C) was domiciled in a rural opportunity zone during the entire
taxable year for which such credit is claimed; or
(2) (A) establishes domicile in a rural opportunity zone on or after
July 1, 2025, and prior to January 1, 2031, and was domiciled in this
state in a county that is not a rural opportunity zone for three or more
years immediately prior to establishing their domicile in a rural
opportunity zone in this state; and
(B) was domiciled in a rural opportunity zone during the entire
taxable year for which such credit is claimed.
(b) A resident individual may claim the credit authorized by this
section for not more than five consecutive years following establishment
of their domicile in a rural opportunity zone.
(c) The maximum amount of any refund under this section shall be
equal to the amount withheld from the resident individual's wages or
payments other than wages pursuant to K.S.A. 79-3294 et seq., and
amendments thereto, or paid by the resident individual as estimated taxes
pursuant to K.S.A. 79-32,101 et seq., and amendments thereto.
(d) No credit shall be allowed under this section if:
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(1) The resident individual's income tax return on which the credit is
claimed is not timely filed, including any extension; or
(2) the resident individual is delinquent in filing any return with, or
paying any tax due to, the state of Kansas or any political subdivision
thereof.
(e) This section shall be a part of and supplemental to the Kansas
income tax act.
Sec. 3. K.S.A. 2024 Supp. 74-50,223 and 79-32,267 are hereby
repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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