Adam Siebers provided an overview for HB2541 that enacts the Kansas rural business growth program act and establishes a premium tax credit program to be administered by the Secretary of Commerce for the purpose of incentivizing capital investment in rural areas. 

In response to a question from the Committee, Alex Stepanek, Advantage Capital, the capital investment referenced in HB2541 is related to creating the fund and the equity. The investment must be certified by the Kansas Department of Commerce and carried forward for five years. The investment must be on or after July 1, 2026 and is intended to generate growth in a rural area.  

Committee discussion ensued.

In response to a question from the Committee, Eddie Penner provided the amount of money that has been spent on the Rural Opportunity Zone (ROZ) program.  He noted for the last three years of tax expenditures, it indicates $2.5 million, $1.8 and $1.6 million was spent on the ROZ income tax credit.  Mr, Penner noted the ROZ program does include the student loan program that the state has a matching share between $1.0 million and  $1.5 million.

Representative A. Smith moved to amend HB2541, seconded by Representative Hoheisel (Attachment 21)

Committee discussion ensued.  Representative A Smith closed on his motion to amend.

The motion to amend HB2541 was favorably passed.

Committee discussion ensued.

Representative Francis made a conceptual motion for HB2541, seconded by Representative Wolfe to sunset that no further certification would go into effect July 1, 2026 and no further certification after June 30, 2031.

Committee discussion ensued.

Representative Francis closed on his conceptual amendment for HB2541.  Motion carries.

Representative Francis moved, second by Representative Hoheisel, the Committee pass out HB2541 favorably as amended. Motion failed.

Division was called and motion failed with 7 Ayes, 12 Nays.