Gov. Laura Kelly signed bipartisan legislation Thursday creating incentives in the form of state income tax credits for investors in construction of residential housing that contributes to economic development in Kansas. The Kelly administration’s statewide survey of housing needs — the first of its kind in three decades — pointed to the need for affordable housing, especially in rural communities. The shortage was identified as an impediment to expansion of existing businesses and attracting new employers. The tax credit administered by the Kansas Housing Resource Corporation and the Kansas Development Finance Authority would be capped at $13 million annually. The law limited a qualified housing developer to use of the tax credit on 40 residential units per year. In terms of credits available after July 1, the measure would offer $35,000 per housing unit in counties with a population under 8,000. The cap would fall to $32,000 per unit in counties with 8,000 to 25,000 residents and to $30,000 per unit in counties with a population between 25,000 and 75,000. The bill set aside $2.5 million for each of the smaller population groups of counties and designated $8 million for the larger set of counties.
Source: The Lawrence Times
