Bill
HB 2395
Kansas offers a nonrefundable tax credit up to $250 per qualifying indoor cat or dog in the first year, plus $100 yearly for up to five more years, for up to three animals.
Status: Introduced Feb. 4, 2025; referred to the House Committee on Taxation.
Purpose
- To create a new nonrefundable Kansas individual income tax credit to help offset certain care and medical expenses for indoor cats and dogs owned by resident taxpayers, encouraging pet adoption and ongoing pet care.
Key provisions
- Credit allowed beginning for tax year 2025 and thereafter against Kansas individual income tax liability.
- Amount per animal:
- Up to $250 in the first taxable year the credit is claimed for a particular qualifying animal.
- Up to $100 for each of up to five additional taxable years for that same animal (i.e., a maximum of six taxable years per animal).
- A taxpayer may claim credits for up to three animals per tax year.
- Credit is nonrefundable and unused credits may not be carried forward.
- Only one taxpayer may claim qualifying expenses for a particular animal in the year the credit is claimed.
- Qualifying animals: a cat or dog that resides indoors and is owned by the resident taxpayer.
- Qualifying expenses (must be incurred and paid before December 1 of the tax year being claimed):
- Vaccines administered by a veterinarian;
- Veterinarian expenses for spaying or neutering;
- Insertion of a microchip that provides the owner’s contact information;
- Food for the animal; and
- Other animal supplies intended for and used by the animal.
- Claim documentation: taxpayers must provide receipts and other documentation as required by the Secretary of Revenue, including proof that the animal has been spayed or neutered.
Fiscal and administrative impact (from Kansas Division of the Budget / Department of Revenue fiscal note)
- Estimated State General Fund revenue reductions:
- FY 2026: ($5.6 million)
- FY 2027: ($7.8 million)
- FY 2028: ($10.0 million)
- Department rationale: based on national veterinary data and state pet counts, the Department estimates tens of thousands of new credits could be claimed annually (66,649 under broad assumptions; 26,443 if limited to adopted animals), producing large gross credit amounts but, because the credit is nonrefundable, only about one‑third is expected to reduce tax liability.
- Implementation costs: one‑time State General Fund cost of $247,618 in FY2026 to modify tax systems and set up the program.
- Ongoing costs: two new FTEs required for taxpayer assistance and administration; annual ongoing cost estimated at $144,362 (State General Fund) starting FY2027.
- The Department notes potential additional programming contract costs if combined legislative changes exceed in‑house capacity.
Who is affected
- Resident individual taxpayers in Kansas who own indoor cats or dogs and meet the documentation requirements; veterinarians and pet-supply vendors (indirectly, via consumer behavior); state tax administration (for implementation and audit).
Procedural / timeline notes
- Effective for tax year 2025 and thereafter.
- Current status: referred to the House Committee on Taxation for consideration.
Compiled from official sources — confirm details with the bill’s official record.
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