Kansas SB 536: Providing a rebate instead of an income tax credit for the high performance tax credit program and capping the maximum rebate provided.

Bill Text

Session of 2026
SENATE BILL No. 536
By Committee on Assessment and Taxation
3-16
AN ACT concerning income taxation; relating to the high performance tax
credit program; providing for a rebate instead of a credit and capping
the maximum rebate provided; amending K.S.A. 2025 Supp. 79-
32,160a and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 79-32,160a is hereby amended to read
as follows: 79-32,160a. (a) For taxable years commencing after December
31, 1999, and before January 1, 2012, any taxpayer who shall invest in a
qualified business facility, as defined in K.S.A. 79-32,154(b), and
amendments thereto, and effective for tax years commencing after
December 31, 2010, and before January 1, 2012, located in an area other
than a metropolitan county as defined in either K.S.A. 74-50,114 or 74-
50,211, and amendments thereto, and also meets the definition of a
business in K.S.A. 74-50,114(b), and amendments thereto, shall be
allowed a credit for such investment, in an amount determined under
subsection (b) or (c), as the case requires, against the tax imposed by the
Kansas income tax act or where the qualified business facility is the
principal place from which the trade or business of the taxpayer is directed
or managed and the facility has facilitated the creation of at least 20 new
full-time positions, against the premium tax or privilege fees imposed
pursuant to K.S.A. 40-252, and amendments thereto, or as measured by the
net income of financial institutions imposed pursuant to article 11 of
chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for
the taxable year during which commencement of commercial operations,
as defined in K.S.A. 79-32,154(f), and amendments thereto, occurs at such
qualified business facility. In the case of a taxpayer who meets the
definition of a manufacturing business in K.S.A. 74-50,114(d), and
amendments thereto, no credit shall be allowed under this section unless
the number of qualified business facility employees, as determined under
K.S.A. 79-32,154(d), and amendments thereto, engaged or maintained in
employment at the qualified business facility as a direct result of the
investment by the taxpayer for the taxable year for which the credit is
claimed equals or exceeds two. In the case of a taxpayer who meets the
definition of a nonmanufacturing business in K.S.A. 74-50,114(f), and
amendments thereto, no credit shall be allowed under this section unless
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the number of qualified business facility employees, as determined under
K.S.A. 79-32,154(d), and amendments thereto, engaged or maintained in
employment at the qualified business facility as a direct result of the
investment by the taxpayer for the taxable year for which the credit is
claimed equals or exceeds five. Where an employee performs services for
the taxpayer outside the qualified business facility, the employee shall be
considered engaged or maintained in employment at the qualified business
facility if: (1) The employee's service performed outside the qualified
business facility is incidental to the employee's service inside the qualified
business facility; or (2) the base of operations or, the place from which the
service is directed or controlled, is at the qualified business facility. No
credits shall be allowed for any investments made pursuant to this
subsection on and after January 1, 2027.
(b) The credit allowed by subsection (a) for any taxpayer who invests
in a qualified business facility that is located in a designated
nonmetropolitan region established under K.S.A. 74-50,116, and
amendments thereto, on or after the effective date of this act, shall be a
portion of the income tax imposed by the Kansas income tax act on the
taxpayer's Kansas taxable income, the premium tax or privilege fees
imposed pursuant to K.S.A. 40-252, and amendments thereto, or the
privilege tax as measured by the net income of financial institutions
imposed pursuant to article 11 of chapter 79 of the Kansas Statutes
Annotated, and amendments thereto, for the taxable year for which such
credit is allowed, but in the case where the qualified business facility
investment was made prior to January 1, 1996, not in excess of 50% of
such tax. Such portion shall be an amount equal to the sum of the
following:
(1) $2,500 for each qualified business facility employee determined
under K.S.A. 79-32,154, and amendments thereto; plus
(2) $1,000 for each $100,000, or major fraction thereof, which shall
be deemed to be 51% or more, in qualified business facility investment, as
determined under K.S.A. 79-32,154, and amendments thereto.
No credits shall be allowed for any investments made pursuant to this
subsection on and after January 1, 2027.
(c) The credit allowed by subsection (a) for any taxpayer who invests
in a qualified business facility that is not