Bill to Create Kansas LIHTC, Increase HTC Percentage Reaches Governor’s Desk

Wednesday, May 4, 2022 - 12:00pm

Legislation to create a Kansas state low-income housing tax credit (LIHTC) is on the desk of Gov. Laura Kelly. H.B. 2237 would create a Kansas affordable housing tax credit for up to the amount of the federal LIHTC and would apply to tax years beginning Jan. 1, 2023 or later. The legislation would also change the state historic tax credit (HTC) to increase the credit to 30% of qualified rehabilitation expenditures (QREs) in cities of 9,500 to 50,000 residents and 40% of QREs for cities of less than 9,500 residents. The current Kansas HTC is for 25% of QREs, with 30% for nonprofits. The House of Representatives voted 109-12 to pass the bill, the Senate voted 34-3.

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provides an introduction to the LIHTC incentive, including its interaction with state credits and other incentives.