Affordable Housing Tax Credit Act could result in $1 billion loss in tax revenue for Kansas
TOPEKA (KSNT) — Kansas lawmakers are discussing affordable housing tax credits and are beginning to realize it's costing them more than they expected.
It was revealed that, over the next two decades, the state could forgo more than $1 billion in tax revenue during the Legislative Post Audit (LPA) Committee meeting on Tuesday, Sept. 16. This is due to the Affordable Housing Tax Credit Act, which was passed in 2022. These credits give tax breaks to Kansas developers who are building affordable housing units here in Kansas.
During last year's session, the Kansas Legislature elected to scale back on these tax credits,. However, the state could still see significant long-term losses when it comes to overall tax revenue.
As a result, some Kansas lawmakers are questioning whether or not the tax credits are necessary, and questioned the effectiveness of the credits during the committee meeting on Sept. 15. However, some state officials believe investing money into housing can bring even more money into the Kansas economy.
27 News spoke with Ryan Vincent, the executive director of the Kansas Housing Resources Corporation, to find out more about the impact these tax credits are really having.
"With this initial investment, we've seen historic buildings be rehabbed, we've seen both low- and moderate-income homes opened up for communities," Vincent said. "Truthfully it allows our employers to expand because if there is a place for our workers to go at night, our employers are going to be successful as well so, investing in housing is a win win."
The tax credits were approved with bipartisan support back in 2022, and last year's move to claw back on some of those credits also received support from both parties.
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