SB 69 — Extending the time period for eligibility for the loan repayment program and the income tax credit for rural opportunity zones, adding down payment assistance and child care reimbursement as program benefit options and expanding eligibility for the income tax credit.

As Amended by Senate Committee Session of 2025 SENATE BILLBILLNo. No.

69 By Committee onAssessmenton Assessment and Taxation 1-23 AN ACT concerning economic development;

adding down payment assistance and child care reimbursement as program benefit options;

expanding eligibility for the income tax credit;

68 Be it enacted by the Legislature of the State of Kansas:

Each such county shall certify to the secretary that such county has made the payment requiredSB by69—Am. this subsection.

(c) Aby residentSC individual shall be entitled to have such individual's SB 69 2 outstandingrequired studentby loan balance paid for attendance at an institution of higher education where such resident individual earned an associate, bachelor or post-graduate degree under the provisions of this sectionsubsection. when such resident individual establishes domicile in a county designated as a rural opportunity zone which that participates in the program as provided in subsection (a), on and after the date in which such county commenced such participation, and prior to July 1, 2026 2031.

(c) Except as provided in subsection (h), a resident individual shall be entitled to have such individual's outstanding student loan balance paid for attendance at an institution of higher education where such resident individual earned an associate, bachelor or post-graduate degree under the provisions of this section when such resident individual establishes domicile in a county designated as a rural opportunity zone which that participates in the program as provided in subsection (a), on and after the date in which such county commenced such participation, and prior to July 1, 2026 2031.

(e) The(e) secretary(1) Commencing shallon adoptJanuary rules1, and2026, regulationsthe necessaryrural toopportunity administerzone theprogram provisionsshall ofinclude thistwo section.additional benefit options:

(f) On(A) JanuaryDown 1,payment 2012,assistance; and annually thereafter until January 1, 2027 2032, the secretary of commerce shall report to the senate committee on assessment and taxation and the house of representatives committee on taxation as to how many residents applied for the rural opportunity zone tax credit.

and (B) child care reimbursement.

Any county that meets the definition of a rural opportunity zone pursuant to K.S.A.

74-50,222, and amendments thereto, may participate in the program benefits provided in this subsection by authorizing such participation by the county commission of such county through a duly enacted written resolution.

Such county shall provide a certified copy of such resolution to the secretary of commerce on or before January 1, 2026, for calendar year 2026, or on or before January 1 for each calendar year thereafter, in which a county chooses to participate in one or both of the benefits.

Such resolution shall be irrevocable and shall obligate the county to participate in the child care reimbursement provided by this subsection for a period of five years if the county participates in such benefit.

Such resolution shall specify the maximum amount of down payment assistance or child care reimbursement for each resident individual to be paid as provided in paragraph (2) or (3), except that the maximum amount of each such benefit shall not exceed $15,000.

(2) If a county submits a resolution to participate in the down payment assistance benefit as provided in paragraph (1), subject to subsection (d), the state of Kansas and such county shall agree to SB 69—Am.

by SC 3 contribute to the down payment, in equal shares, an amount of up to 3% of the purchase price for the purchase of a residence within such county by a resident individual who qualifies under subsection (f) and is a first- time homebuyer, except that the maximum amount of such down payment assistance shall not exceed $15,000.

The state of Kansas is not obligated to pay a portion of the down payment of any resident individual who qualifies pursuant to subsection (f) prior to the county submitting a resolution to the secretary pursuant to subsection (e).

Each such county shall certify to the secretary that such county has made the payment required by this paragraph.

(3) If a county submits a resolution to participate in the child care reimbursement benefit as provided in paragraph (1), subject to subsection (d), the state of Kansas and such county shall agree to pay in equal shares reimbursement of child care expenses paid for a dependent child or children during the year by a resident individual who qualifies under the provisions of subsection (f), except that the maximum amount of such reimbursement shall not exceed $15,000 over a five-year period, or $3,000 per year.

The state of Kansas is not obligated to pay a portion of the reimbursement of any resident individual who qualifies pursuant to subsection (f) prior to the county submitting a resolution to the secretary pursuant to subsection (e).

Each such county shall certify to the secretary that such county has made the payment required by this paragraph.

(f) Except as provided in subsection (h), a resident individual shall be entitled to down payment assistance or child care reimbursement under the provisions of this section if such resident individual establishes domicile in a county designated as a rural opportunity zone that participates in the program as provided in subsection (e) on and after the date that such county commenced such participation and prior to July 1, 2031.

Such resident individual may enroll in this program in a form and manner prescribed by the secretary.

Subject to subsection (d), once enrolled, such resident individual enrolled in the child care reimbursement benefit shall be entitled to full participation in the program for five years, except that if the resident individual relocates outside the rural opportunity zone for which the resident individual first qualified, such resident individual forfeits such individual's eligibility to participate, and obligations under this section of the state and the county terminate.

No resident individual shall enroll and be eligible to participate in this program after June 30, 2031.

(g) The county's share of any benefit pursuant to this section may be paid by the county, the employer of the individual, any municipality or political subdivision within the county or any other organization, business, group or individual, or any combination thereof, if so SB 69—Am.

by SC 4 authorized by the county.

(h) A county may participate in one, two or all three of the program benefits pursuant to subsections (a) and (e), but an eligible resident individual may only receive benefits pursuant to one such program benefits offered by the county.

(i) The secretary shall adopt rules and regulations necessary to administer the provisions of this section.

(f)(j) On January 1, 2012, and annually thereafter until January 1, 2027 2032, the secretary of commerce shall report to the senate committee on assessment and taxation and the house of representatives committee on taxation as to how many residents applied for the rural opportunity zone tax credit.

(1) Establishes(1) (A) Establishes domicile in a rural opportunity zone on or after July 1, 2011, and prior to January 1, 2026 2031, and was domiciled outside this state for five or more years immediately prior to establishing their domicile in a rural opportunity zone in this state;

(2) had(2)(B) had Kansas source income less than $10,000 in any one year for five or more years immediately prior to establishing their domicile in a rural opportunity zone in this state;

and (3) was(3)(C) was domiciled in a rural opportunity zone during the entire taxable year for which such credit is claimed.claimed;

(b) Aor resident(2) individual(A) establishes maydomicile claimin thea creditrural authorizedopportunity byzone on or after July 1, 2025, and prior to January 1, 2031, and was domiciled in this SBstate 69in 3a sectioncounty forthat is not morea thanrural fiveopportunity consecutivezone for three or more years followingimmediately establishmentprior ofto establishing their domicile in a rural opportunity zone.zone in this state;

and (B) was domiciled in a rural opportunity zone during the entire taxable year for which such credit is claimed.

(b) A resident individual may claim the credit authorized by this section for not more than five consecutive years following establishment of their domicile in a rural opportunity zone.

(1) TheSB resident69—Am. individual's income tax return on which the credit is claimed is not timely filed, including any extension;

by SC 5 (1) The resident individual's income tax return on which the credit is claimed is not timely filed, including any extension;