Kansas Governor Signs Bill Creating State LIHTC, Increasing Certain HTC Percentages
Kansas Gov. Laura Kelly signed legislation Thursday to create a state low-income housing tax credit (LIHTC) for up to the amount of the federal LIHTC award to a property. The legislation also increased the state historic tax credit (HTC) percentages for certain properties. H.B. 2237 would create the state LIHTC effective for tax years beginning Jan. 1, 2023 or after. The state HTC percentage–which is currently 25%–will be increased to 30% of qualified rehabilitation expenditures (QREs) in cities of 9,500 to 50,000 residents and to 40% in cities of less than 9,500 residents. The legislation also creates the Kansas housing investor tax credit, which is a credit of up to $35,000 per unit for single-family homes with an annual cap of $13 million.
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.