Committee debates reinstating endangered-species habitat tax credit; capped amendment adopted but bill fails to advance

The Committee on Taxation considered House Bill 2,097, which would reinstate and amend an expired non-game and endangered species habitat income tax credit that had been in effect from 1998 to 2002.

Why it matters: The credit is aimed at private landowners who enroll critical habitat or make property available for public access, with oversight by the Kansas Department of Wildlife and Parks. Lawmakers debated the fiscal impact and whether the state should subsidize habitat on largely privately owned lands.

Amendment and fiscal concerns: Representative Kessler offered an amendment that added a $500,000 cap on the total credits and moved to limit the state's exposure. The reviser explained the amendment: "It puts a cap of $500,000 on it... It's not to exceed $500,000 for the credit." Committee discussion revisited the bill's fiscal note. The Division of Budget's revised fiscal note estimated a much lower revenue effect than an earlier version; the reviser reported the Department of Revenue had estimated a $100,000 reduction to the state general fund in FY 27 and FY 28 after revisions. Representative Corbett and others questioned whether the state should subsidize habitat on largely private land, noting Kansas is predominantly privately owned and expressing skepticism about using taxpayer dollars for this purpose.

Committee votes and outcome: The committee voted to adopt the Kessler amendment (voice vote; motion carried). After discussion on the bill as amended, Representative Kessler moved the bill favorably; the motion failed when "the no's appear to have it" and the chair announced the motion failed. The transcript records no roll-call tally for the final failure of the bill in committee.

What was said: Representative Corbett said of the broader policy, "It seems kind of strange to me if the state being 97% privately owned, that they're asking taxpayers to do habitat for the remaining part of it, so I'll probably be no on the amendment and no on the bill." The reviser clarified the fiscal figures for the record. Representative Kessler explained the cap rationale: "The fiscal note was a couple million dollars, then we came back and that's about 300 and some thousand dollars. I'll tell you what, let's make it $500,000. Can't go over it, and that's kinda where this comes from."

Next steps: The Kessler amendment was adopted, but the bill did not pass out of committee at this meeting.