Bill > HB2119

This bill modifies the Kansas affordable housing tax credit by limiting new credits for qualified developments receiving 4% federal tax credits after November 15, 2025, while maintaining support for developments with 9% federal tax credits. Specifically, the bill caps the annual state housing tax credit at 100% of the federal tax credit allocation for 9% credits starting in 2026. The Kansas Housing Resource Corporation (KHRC) will no longer accept applications or award additional credits for 4% tax credit developments after November 15, 2025, but existing credit allocations awarded before that date will continue to be honored throughout their original credit period. The tax credit, which allows developers to offset income, privilege, or premium tax liability for affordable housing developments, will still be available for qualified developments receiving 9% federal tax credits, with credits that exceed tax liability in a given year able to be carried forward for up to 11 subsequent tax years. The bill effectively phases out 4% federal tax credit housing developments while maintaining support for 9% credit developments, with the changes set to take effect from and after publication in the statute book.

Business and Industry, Government Affairs

Commerce, Labor and Economic Development (House)

https://kslegislature.gov/li/b2025_26/measures/hb2119/