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Committee extends Angel investor tax credit sunset to 2031 amid budget concerns
Summary
Senate Bill 429, extending the Angel investor tax credit sunset from tax year 2026 to 2031, was reported favorably by the Senate Commerce Committee; members raised concerns about carryforwards, transferability, and budget impacts.
The Senate Commerce Committee voted to advance Senate Bill 429, a proposal to extend the sunset date for the Angel investor tax credit from tax year 2026 to tax year 2031.
Committee staff summarized the measure: “Senate bill number 4 29 relates to tax credit incentives and would extend the sunset for the Angel investor tax credit … to tax year 2031.” Staff explained the credit generally is an income tax credit (and related insurance premium and privilege tax exemption) based on up to 50% of an investor’s cash investment in a qualified Kansas business. Staff stated unused credits may be carried forward until used, the credit is transferable and is not believed to be refundable. Committee discussion noted the program has an $8,000,000 annual limit.
Senator Tyson repeatedly raised fiscal concerns, saying the state continues to grant tax credits while encountering budget shortfalls: “we keep handing out tax credit on 1 hand, and then we keep wondering why we're short on the budget on the other hand.” Senator Blue said he planned to offer an amendment on the floor to change the sunset length.
Senator Owens moved the bill out of committee; Senator Faust Gadell seconded and the committee voted to advance SB 429. The transcript records the motion carried but does not include a roll-call tally. Members discussed whether changes to refundability, transferability or the carryforward period should be handled by floor amendment.
SB 429 would extend the Angel investor tax credit’s statutory sunset to tax year 2031; staff described its mechanics and limits during committee.
