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AN ACT relating to income taxation; authorizing credits for the hiring of
  developmentally disabled persons.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  (a) Any business firm which employs on a full-time basis
a person with a developmental disability or who is seriously and persist-
ently mentally ill and who is engaged for a period of eight months or more
in the performance of duties in connection with the operation of such
firm, shall be allowed a credit against the tax imposed by the Kansas
income tax act, the tax on net income of national banking associations,
state banks, trust companies or savings and loan associations imposed
under article 11 of chapter 79 of the Kansas Statutes Annotated, or the
tax on net income of insurance companies imposed under article 28 of
chapter 40 of the Kansas Statutes Annotated. The amount of the credit
allowed shall be $500 for each such person employed, except that no more
than $50,000 may be claimed for credit in any one taxable year.
  (b)  As used in this section:
  (1)  ``Business firm'' means any business entity authorized to do busi-
ness in the state of Kansas which is subject to the state income tax im-
posed by the provisions of the Kansas income tax act, any national banking
association, state bank, trust company or savings and loan association pay-
ing an annual tax on its net income pursuant to article 11 of chapter 79
of the Kansas Statutes Annotated, or any insurance company paying an
annual tax on its net income pursuant to article 28 of chapter 40 of the
Kansas Statutes Annotated; and
  (2)  ``person with a developmental disability or who is seriously and
persistently mentally ill'' means any person who meets the criteria estab-
lished for mental retardation or developmental disability or serious and
persistent mental illness by the division of mental health and retardation
services of the department of social and rehabilitation services, and who
is recommended for employment by a business firm, by a community
mental health center or facility for the mentally retarded established pur-
suant to K.S.A. 19-4001 et seq., or by any entity which any such center
or facility has contracted with to provide mental health services or services
for the mentally retarded, or both.
  (c)  The provisions of this section shall be applicable to all taxable
years commencing after December 31, 1996.
  Sec. 2.  This act shall take effect and be in force from and after its
publication in the statute book.