Budget & Taxes (Tax Credits)

HB 2005 creates a 75% income tax credit for Kansas veterans deemed totally disabled, permanently disabled, or unemployable under federal standards (38 C.F.R. § 3.340). It directly benefits eligible veterans who pay property taxes on their primary residence, allowing them to claim a credit equal to 75% of those taxes. The credit cannot exceed the actual property taxes paid and is unavailable if the veteran already received a homestead property tax refund or senior relief credit for the same property. Any excess credit beyond income tax liability will be refunded, and the credit applies to tax years starting in 2025.

SB 179 establishes a refundable child tax credit in Kansas for tax years 2025 and beyond. It provides credits ranging from $25 to $600 per qualifying child (under age 6) based on the taxpayer's adjusted gross income, with higher income levels receiving smaller credits. The credit reduces tax liability, and any excess is refunded to the taxpayer. It directly affects Kansas resident parents or guardians with children under 6 who meet residency and relationship criteria outlined in the bill.

HB 2387 extends the deadline for Kansas taxpayers to claim an income tax credit for contributions to the Friends of Cedar Crest Association and the Eisenhower Foundation. The bill amends Kansas tax law to change the expiration date from December 31, 2026, to December 31, 2036, allowing contributions made during this extended period to qualify for a 50% credit. Taxpayers can claim up to $25,000 (individuals) or $50,000 (corporations/financial institutions) annually, with a total annual limit of $350,000 across all taxpayers. This change directly affects Kansas residents and businesses making qualifying donations to these two nonprofits before 2037.

SB 227 modifies Kansas's tax credit for historic building restoration by creating tiered credit rates based on city population size and project cost. Property owners restoring historic structures in cities with under 50,000 residents receive a 40% credit for projects costing $5,000 or more, while larger cities offer 25-30% credits. The bill also allows taxpayers to transfer unused credits to other entities and carry forward excess credits for up to five years. This directly affects property owners, developers, and nonprofits undertaking historic preservation in Kansas communities.