SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 69
As Amended by Senate Committee on
Assessment and Taxation
Brief*
SB 69, as amended, would make changes to the Rural
Opportunity Zone (ROZ) student loan repayment program to
authorize additional types of benefits, expand eligibility for the
ROZ income tax credit, and extend the sunset dates of both.
[Note: In continuing law, an ROZ is defined as a county
with a population of no more than 40,000.]
Student Loan Repayment Program
The bill would extend the sunset on the ROZ student
loan repayment program from July 1, 2026, to July 1, 2031.
The bill also would authorize ROZ counties, beginning
July 1, 2026, to offer first-time homebuyer down payment
assistance or child care reimbursement to ROZ participants.
A county could choose to authorize the offer of one or both of
the alternatives and would be required to enact a resolution
authorizing the alternative benefit and specifying the
maximum amount to be available to each qualified individual,
up to $15,000. The county would be required to provide the
resolution to the Department of Commerce prior to offering
the alternative benefit.
For a county choosing to offer down payment
assistance, the State would be required, subject to
appropriation acts, to match funding in an amount of
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
https://klrd.gov/ combined county and state funding up to 3 percent of the
price of a home purchased within the county by a first-time
homebuyer who qualifies for the program.
For a county choosing to offer child care reimbursement,
the State would be required, subject to appropriation acts, to
match funding for reimbursement of child care expenses paid
for dependent children of qualifying residents of the county,
up to $3,000 per year for five years.
Counties wishing to offer down payment assistance and
child care reimbursement would be authorized to do so even
if the State does not participate in such benefits.
An individual would be eligible to receive only one of the
three possible options: student loan repayment, down
payment assistance, or child care reimbursement. For each
individual receiving benefits, the maximum total benefit
amount for any of the options could not exceed $15,000 over
five years and benefits would be forfeited upon relocation
outside of the ROZ.
Income Tax Credit
The bill would extend availability of the ROZ income tax
credit, currently available through tax year 2026, through tax
year 2031. It would also expand eligibility for the credit to
include individuals relocating to a ROZ from within Kansas,
provided the individual lived outside a ROZ for at least three
years prior to relocating and was domiciled in a ROZ during
the entirety of the taxable year in which the credit is claimed.
The sunset date on a requirement for the Secretary of
Commerce to annually report on the number of individuals
applying for the tax credit would also be extended, from 2027
to 2032.
2- 69 Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by representatives of American Implement,
Department of Commerce, the Kansas Hospital Association,
and Minneola Healthcare. Proponents generally stated the
program is a valuable tool in recruiting new residents to the
state and attracting residents to rural areas and helping
businesses in such areas meet employment needs.
No other testimony was provided.
The Senate Committee amended the bill to:
●Authorize counties to offer down payment
assistance or child care reimbursement as
alternative ROZ benefits; and
●Expand eligibility for the income tax credit to
include Kansas residents relocating from outside a
ROZ county.
Fiscal Information
A revised fiscal note on the amended bill was not
immediately available.
Rural opportunity zones; Kansas Income Tax Act; sunset; first-time homebuyers;
down payment assistance; child care reimbursement
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