Gov. Laura Kelly signs sweeping tax credit package for child care, ethanol and gun storage
Bipartisan bill offers targeted relief while governor vetoes broader GOP tax plans
TOPEKA, Kan. — Kansas businesses investing in their employees' child care and retailers selling higher-ethanol fuel will soon receive significant tax breaks under a bipartisan package signed into law Monday.
Gov. Laura Kelly, a Democrat, signed Senate Bill 82, creating targeted tax incentives to bolster the state's workforce, agricultural sector and public safety, while simultaneously vetoing three broader Republican-backed tax plans. The bill previously cleared the House 76-45 and passed the Senate 36-2.
The law's centerpiece dramatically expands the state's child care assistance tax credit. Businesses that provide on-site child care, partner with existing programs or pay for employee referral services can now recoup 75% of those costs through nonrefundable tax credits. Employers can also receive credits for donating to organizations that expand local child care capacity. Companies can claim up to $100,000 annually and carry forward unused credits for up to three years.
Senate Majority Leader Chase Blasi, R-Sedgwick, called the measure a crucial step to support the workforce. David Jordan, president of the United Methodist Health Ministry Fund, praised changes that allow businesses to more feasibly help address the state's child care shortage.
Beyond child care, the legislation addresses long-sought priorities for agricultural and safety advocates. The bill establishes a 5-cent-per-gallon nonrefundable income tax credit for retailers selling E15 or higher-ethanol fuel blends, a provision championed by the state's corn producers and capped at $2.5 million statewide per year. The law also introduces an individual income tax credit for Kansans who purchase lockable gun and ammunition storage devices, while repealing several existing tax credits, including the qualified alternative-fueled motor vehicle property credit.
Kelly contrasted the tailored provisions of Senate Bill 82 with her vetoes of three Republican tax cut bills issued the same day. The governor said precise economic incentives — such as the $100,000 child care business limit and the $2.5 million statewide ethanol cap — are her preferred vehicle for sustainable tax relief rather than the broad property or income tax reductions she rejected.
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