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HOUSE BILL No. 2464
AN ACT concerning income taxation; relating to credits; extending the number of years
that new credits may be issued or earned for contributions to graduates of aerospace
and aviation-related educational programs and employers of program graduates;
extending the tax credits for contributions to the Eisenhower foundation and friends
of cedar crest association for five years; extending the sunset for the angel investor
tax credit to 2031 and providing for a minimum amount of credits for investors in
qualified Kansas businesses located in counties with a population of 50,000 or fewer;
amending K.S.A. 2025 Supp. 74-8133, 79-32,274, 79-32,275 and 79-32,295 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 74-8133 is hereby amended to read
as follows: 74-8133. (a) A credit against the tax imposed by article 32
of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto, on the Kansas taxable income of an angel investor and against
the tax imposed by K.S.A. 40-252, and amendments thereto, shall be
allowed for a cash investment in the qualified securities of a qualified
Kansas business. For tax year 2021 and all tax years thereafter, the
credit shall be in a total amount of up to 50% of such investors' cash
investment in any qualified Kansas business, subject to the limitations
set forth in subsection (b). This Such tax credit may be used in its
entirety in the taxable year in which the cash investment is made,
except that no tax credit shall be allowed in a year prior to January 1,
2005. If the amount by which that portion of the credit allowed by this
section exceeds the investors' liability in any one taxable year,
beginning in the year 2005, the remaining portion of the credit may be
carried forward until the total amount of the credit is used. If the
investor is a permitted entity investor, the credit provided by this
section shall be claimed by the owners of the permitted entity investor
in proportion to their ownership share of the permitted entity investor.
(b) For tax year 2021 and all tax years thereafter, the secretary of
revenue shall not allow tax credits of more than $100,000 for a single
Kansas business or a total of $350,000 in tax credits for a single year
per investor who is a natural person or owner of a permitted entity
investor. No tax credits authorized by this act shall be allowed for any
cash investments in qualified securities for any year after the year 2026
2031. The total amount of tax credits that may be allowed under this
section shall not exceed:
(1) $4,000,000 during the tax year 2007;
(2) $6,000,000 for tax years 2008 through 2010 and 2012 through
2022, except that for tax year 2011, the total amount of tax credits that
may be allowed under this section shall not exceed $5,000,000;
(3) $6,500,000 for tax year 2023;
(4) $7,000,000 for tax year 2024;
(5) $7,500,000 for tax year 2025; and
(6) $8,000,000 for tax year 2026 and for each succeeding tax year
through tax year 2031.
The balance of unissued tax credits may be carried over for issuance
in future years until tax year 2026 2031.
For tax year 2027 and all tax years thereafter, at least 25% of the
total amount of tax credits that may be allowed each tax year shall be
utilized for investors investing in qualified Kansas businesses located
in counties with a population of 50,000 or fewer, in years that the
number of requests is sufficient to allow such distribution of tax credits.
Such determination of whether there are sufficient requests shall be
made based on the requests received on or before October 1 of each
year.
(c) A cash investment in a qualified security shall be deemed to
have been made on the date of acquisition of the qualified security, as
such date is determined in accordance with the provisions of the
internal revenue code.
(d) Any investor without a current tax liability at the time of the
investment in a qualified Kansas business , who does not reasonably
believe that it such investor will owe any such tax for the current
taxable year and who makes a cash investment in a qualified security of
a qualified Kansas business shall be deemed to acquire an interest in
HOUSE BILL No. 2464—page 2
the nature of a transferable credit limited, for tax year 2021 and all tax
years thereafter, to an amount of up to 50% of this such cash
investment. This The interest may be transferred to any natural person ,
whether or not such person is then an investor , and be claimed by the
transferee as a credit against the transferee's Kansas income tax liability
beginning in the year provided in subsection (a). No person shall be
entitled to a refund for the interest created under this section. Only the
full credit for any one investment may be transferred , and this such
interest may only be transferred one time. A credit acquired by transfer
shall be subject to the limitations prescribed in this section.
Documentation of any credit acquired by transfer shall be provided by
the investor in the manner required by the director of taxation.
(e) The reasonable costs of the administration of this act, the
review of applications for certification as qualified Kansas businesses
and the issuance of tax credits authorized by this act shall be
reimbursed through fees paid by the qualified Kansas businesses and
the investors or the transferees of investors, according to a reasonable
fee schedule adopted by the secretary by rules and regulations in
accordance with the rules and regulations filing act.
Sec. 2. K.S.A. 2025 Supp. 79-32,274 is hereby amended to read as
follows: 79-32,274. (a) For taxable years commencing after December
31, 2020, and before January 1, 2026 2031 , there shall be allowed a
credit against the tax imposed by the Kansas income tax act and the
privilege tax pursuant to K.S.A. 79-1106 et seq., and amendments
thereto, in an amount equal to 50% of the total amount contributed
during the taxable year by a taxpayer subject to income tax pursuant to
K.S.A. 79-32,110(a) or (c), and amendments thereto, or subject to the
privilege tax pursuant to K.S.A. 79-1107 and 79-1108, and amendments
thereto, to the Eisenhower foundation.
(b) The amount of such credit awarded to a taxpayer in a taxable
year pursuant to this section shall not exceed:
(1) $25,000 for any taxpayer subject to the income tax on resident
individuals imposed pursuant to K.S.A. 79-32,110(a), and amendments
thereto; or
(2) $50,000 for any taxpayer subject to the income tax on
corporations imposed pursuant to K.S.A. 79-32,110(c), and
amendments thereto, or the privilege tax on financial institutions
pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto.
(c) The aggregate amount of credits claimed pursuant to this
section shall not exceed $350,000 for any fiscal year.
(d) The credit allowed by this section shall not exceed the amount
of tax imposed under the Kansas income tax act or the privilege tax
reduced by the sum of any other credits allowable pursuant to law. Such
credit shall be deducted from the taxpayer's income or privilege tax
liability for the taxable year in which the contributions are made by the
taxpayer. The taxpayer shall not be allowed to carry over any amount of
such credit exceeding the taxpayer's income or privilege tax liability.
Sec. 3. K.S.A. 2025 Supp. 79-32,275 is hereby amended to read as
follows: 79-32,275. (a) For taxable years commencing after December
31, 2020, and before January 1, 2026 2031 , there shall be allowed a
credit against the tax imposed by the Kansas income tax act and the
privilege tax pursuant to K.S.A. 79-1106 et seq., and amendments
thereto, in an amount equal to 50% of the total amount contributed
during the taxable year by a taxpayer subject to income tax pursuant to
K.S.A. 79-32,110(a) or (c), and amendments thereto, or subject to the
privilege tax pursuant to K.S.A. 79-1107 and 79-1108, and amendments
thereto, to the friends of cedar crest association.
(b) The amount of such credit awarded to a taxpayer in a taxable
year pursuant to this section shall not exceed:
HOUSE BILL No. 2464—page 3
(1) $25,000 for any taxpayer subject to the income tax on resident
individuals imposed pursuant to K.S.A. 79-32,110(a), and amendments
thereto; or
(2) $50,000 for any taxpayer subject to the income tax on
corporations imposed pursuant to K.S.A. 79-32,110(c), and
amendments thereto, or the privilege tax on financial institutions
pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto.
(c) The aggregate amount of credits claimed pursuant to this
section shall not exceed $350,000 for any fiscal year.
(d) The credit allowed by this section shall not exceed the amount
of tax imposed under the Kansas income tax act or the privilege tax
reduced by the sum of any other credits allowable pursuant to law. Such
credit shall be deducted from the taxpayer's income or privilege tax
liability for the taxable year in which the contributions are made by the
taxpayer. The taxpayer shall not be allowed to carry forward any
amount of such credit exceeding the taxpayer's income or privilege tax
liability.
Sec. 4. K.S.A. 2025 Supp. 79-32,295 is hereby amended to read as
follows: 79-32,295. No new credits shall be issued or may be earned
under the provisions of K.S.A. 2025 Supp. 79-32,290 through 79-
32,293, and amendments thereto, after December 31, 2026 2031.
Sec. 5. K.S.A. 2025 Supp. 74-8133, 79-32,274, 79-32,275 and 79-
32,295 are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and was
adopted by that body
HOUSE adopted
Conference Committee Report
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report
President of the Senate.
Secretary of the Senate.
APPROVED
Governor.