Senators, House members weigh changes to House Bill 2119 affordable-housing tax credit

Senators and House leaders meeting in a commerce committee discussion debated options for House Bill 2119, a proposal that would change the state's Low-Income Housing Tax Credit (LIHTC).

Senator Robins, speaking to the group, said negotiations are under way and described a likely path forward if an amendment can be agreed: "Assuming we're able to make that happen, our hope would be to, briefly have a commerce committee meeting, untable it, amend it, and then pass it out favorably." He said those talks were ongoing and that a formal position had not yet been adopted.

The matter matters because of the measure's fiscal impact. Mr. House Chair said the current fiscal exposure is large: "We are currently spending $250,000,000 a year in debt each year that this stays in place," he said, and contrasted that with an original fiscal note of $25,000,000. He urged colleagues to consider options that reduce the fiscal note as negotiations continue.

Nut graf: Lawmakers discussed narrowing the LIHTC or using time-limited approaches to lower long-term state costs, while also considering whether to pair other tax-credit proposals with 2119. No formal motion or vote occurred; committee members agreed to reconvene and continue negotiating details with leadership.

Discussion details and options

Senator Robins urged the group to focus first on 2119 and proposed a compromise offered by House negotiators: eliminating the 4 percent LIHTC credit would reduce the bill's projected annual cost from about $25,000,000 to roughly $8,800,000 per year, he said. He added that another option under discussion would be to move aspects of Senate Bill 51 into HB 2119, but that leadership would need to decide whether to combine vehicles.

Committee members described several options still on the table: a one-year break to observe how the program functions, a reduced annual cap in the $5 million to $8.5 million range discussed informally, or a sunset provision. "One option was to take a one-year break on it, see how the program runs, continue it at a lower rate," Mr. House Chair said.

A member of the Senate caucus expressed stronger opposition: "The position of my caucus is to, you know, frankly we'd rather just not see this bill worked at all but if it must be worked then we support the Senate position. Do not support a break would consider a sunset," the senator said.

Related bills and schedule

Participants also referenced House Bill 2340, described in the meeting as a remediation bill for pesticide-impacted land in Jones County, and two Senate tax-credit bills now on lawmakers'radar: Senate Bill 51, the Qualified Data Center Sales Tax Exemption, and Senate Bill 52, the Kansas Film and Digital Media Development Act. Senator Robins said 23 40 had passed the House and was tabled in the Senate, and that negotiators were exploring an amendment to address the Senate commerce committee's concerns so the bill could be untabled and acted on.

There were no formal votes recorded during the discussion. The chair proposed reconvening after the chamber recess; members tentatively planned to meet again at 3:30 p.m. to continue negotiations.

Ending: next steps and unanswered questions

Committee members agreed to continue discussions with leadership and to reconvene after the Senate recessed; no decision on final language, a vote, or a formal amendment was made during this session. Several participants said additional conversations with leadership offices and across chambers will determine whether changes such as reduced credits, a sunset, or combining vehicles will move forward.