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Bill

SB 72

Providing for transferability of Kansas housing investor tax credits from the year that the credit was originally issued.

2025-2026 Regular Session

Kansas bill allowing housing investor tax credits to be transferred between taxpayers in the original issue year to increase investment flexibility and capital flow.

Died in Committee
#taxation
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WeVote Research Nonpartisan
Bill Summary · SB 72

Legislative bill overview

SB 72 allows Kansas housing investor tax credits to be transferred to other taxpayers in the year they are originally issued, rather than being limited to use only by the initial recipient. This modifies existing tax credit policy to increase flexibility in how these credits can be utilized within the tax system.

Why is this important

Housing investor tax credits are designed to incentivize residential development and investment. Allowing transferability could make these credits more attractive to investors by creating a secondary market, potentially increasing investment in Kansas housing projects. However, it also affects state tax revenue collection and how tax benefits are distributed.

Potential points of contention

  • Tax revenue impact: Transferable credits may be used more aggressively or sold at discounts, potentially reducing the state's tax collection compared to current policy
  • Market fairness: Allowing transfers could benefit larger investment firms with resources to trade credits, while smaller developers may lack access to secondary markets
  • Administrative complexity: The state must establish rules for credit transfers, tracking, and verification to prevent fraud or double-counting of credits

Compiled from official sources — confirm details with the bill’s official record.

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