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HB 2210

Relating to coordinated care organizations; declaring an emergency.

2025 Regular Session

Establishes a refundable Kansas child tax credit for residents with qualifying children under 4, phased by income, starting in 2025, with annual inflation adjustments.

In committee upon adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 2210

Summary — HB 2210 (Introduced Jan. 29, 2025)

Establishing a refundable child income tax credit (Kansas)

Purpose

HB 2210 creates a refundable child tax credit for resident individual taxpayers beginning in tax year 2025, aimed at providing direct tax relief to families with very young children (under age 4).

Key provisions

  • Credit amounts (per qualifying child under age 4), based on Kansas adjusted gross income (AGI):
    • $0 – $25,000: $600
    • Over $25,000 – $50,000: $400
    • Over $50,000 – $75,000: $200
    • Over $75,000 – $100,000: $100
    • Over $100,000 – $200,000: $75
    • Over $200,000 – $350,000: $50
    • Over $350,000: $25
  • Refundable: credit in excess of tax liability is refunded to the taxpayer.
  • Married filing separately: if taxpayers could have filed jointly but file separately, each may claim only one-half of the joint-credit amount per qualifying child.
  • Annual inflation adjustment: beginning tax year 2026, threshold income amounts and credit amounts are increased annually by the federal cost‑of‑living adjustment (IRC §1(f)(3)).
  • Annual reporting: Secretary of Revenue must submit, by January 31 each year, a report to the House and Senate taxation committees showing number of recipients, adjusted thresholds and credit amounts, aggregate credits, cost analysis and other evaluation information.

Eligibility / qualifying child (selected)

  • Must meet relationship (child, descendant of child, sibling/step‑sibling or descendant), residency (same principal place of abode > half the taxable year), age (not attained 4 years by close of calendar year), support (not provided >50% of own support), and joint-return tests.
  • One qualifying child may be claimed by only one taxpayer per tax year (except where the Bill provides otherwise).

Fiscal impact (Division of the Budget / Dept. of Revenue estimates — Revised Feb. 24, 2025)

  • Estimated decrease in State General Fund revenues:
    • FY2026: ($34.1 million)
    • FY2027: ($35.5 million)
    • FY2028: ($36.9 million)
  • Implementation costs (Dept. of Revenue):
    • FY2026: $178,121 (one‑time IT/programming and setup)
    • FY2027 onward: ongoing $55,403 per year (salaries/overhead for 1.00 FTE to assist taxpayers/administer program)
  • The Department estimated 122,387 credits claimed (based on 2023 returns), assumed 1.0% annual growth in returns and used a 3.0% annual COLA assumption in projections.
  • Dept. of Administration notes potential, unspecified effects on debt setoff program (larger refunds could increase amounts intercepted for outstanding debts).

Who is affected

  • Resident individual taxpayers in Kansas with qualifying children under age 4. Impact concentrated on lower‑ and middle‑income households because credit amounts decline with higher AGI brackets.
  • State fiscal administrators (Dept. of Revenue, Dept. of Administration) due to implementation, reporting and potential changes to debt setoff receipts.

Timeline / procedural status

  • Introduced: Jan. 29, 2025; referred to House Committee on Taxation.
  • Fiscal note revised Feb. 24, 2025. If enacted, credit applies starting tax year 2025; annual reporting begins the next calendar year (first report due Jan. 31 following implementation).

Notes: Fiscal estimates are Department projections based on 2023 returns and assumptions described above. The bill text includes the formal statutory definitions and mechanics as part of the Kansas Income Tax Act.

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

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