Witnesses tell Senate tax committee repeal of HPIP, PEAK and housing credits would threaten jobs and housing projects

At a Senate Tax Committee hearing, business and housing groups urged lawmakers not to eliminate HPIP and PEAK tax incentive programs or state affordable-housing tax credits, saying the programs have supported manufacturing expansions, job creation and large private investment across Kansas.

Those testifying said the incentives helped keep existing companies and attracted new ones. "My name is Lisa Hack and I am the executive director of Leavenworth County Development Corporation," Hack said, describing her organization as a "non profit public private organization that does economic development for Leavenworth County." Hack told the committee 12 companies in Leavenworth County have used these programs, creating 339 new jobs and investing "over a hundred and $2,000,000" in the past decade; she also said recent projects such as Hills Pet Nutrition and DSM represent "together, those 2 companies are investing over half a billion dollars in our community."

The housing industry presented detailed figures on the role of a state affordable-housing tax credit program. "In 2023 alone 2,138 units generating over $540,000,000 of revenue," Tony Kresnick, speaking for the Kansas Housing Association, said. He told the committee that in 2024 the sector developed 2,596 units producing about $557,000,000 in development revenue, and that without the state credit program developers would have produced roughly 86–87.5% fewer units in those years.

Kansas Chamber witness Eric Stafford said the Chamber opposes total elimination of HPIP and PEAK and prefers targeted reforms. He told the committee legislators and tax professionals have identified roughly "$900,000,000" in outstanding HPIP credits in a November 2023 post-audit but said industry estimates are that "only about half of those credits would ever be claimed." Stafford described attempts to obtain clearer tracking from state agencies and said the data are not currently compiled in a way that lets the state confidently estimate the real fiscal exposure.

Committee members pressed witnesses on contingent liabilities, sunsetting and the interaction between tax credits and broader tax-rate changes. Senator Schallenberger suggested the state should track HPIP/PEAK as a contingent liability on balance sheets; a member asked whether a multi-year sunset would be an acceptable compromise. Witnesses repeatedly emphasized the programs' role in keeping Kansas competitive with neighboring states and in supporting pipeline projects the state has already approved under its Qualified Allocation Plan for housing.

No formal committee votes were taken during the hearing. The committee heard additional written testimony and then closed the hearing on Senate Bill 283 before moving to another bill.

Ending: Committee members and conferees agreed there is more to study. Business and housing representatives said they would work with lawmakers on reforms to tighten program administration and data collection but urged preserving the core incentives while that work proceeds.