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Minutes for HB2721 - Committee on Taxation
Short Title
Extending the eligible time period for the rural opportunity zone loan repayment program and income tax credit.
Minutes Content for Mon, Feb 24, 2020
Mr. Siebers provided an overview for HB2721 to extend the eligibility for the Rural Opportunity Zone Program. Currently the program sunsets June 30, 2021 and HB2721 would extend the date to June 30, 2013. The bill also extends the sunset date for the income tax credit from January 1, 2022 to January 1, 2024.
Proponents:
Representative Kelly testified for HB2721 stating the bill would extend the Rural Opportunity Zone from January 1, 2021 to January 1, 2023. for seventy-seven counties in Kansas. He noted the Department of Commerce is working on a potential substitution for the ROZ Program. He stated for Montgomery County, the program has been an important tool to draw new residents to the county to work and live (Attachment 5).
Trisha Purdon, Montgomery County Action Council testified for HB2721 which would extend the current sunset date of July 1, 2021 to July 1, 2023 for the Rural Opportunity Program. She stated in Montgomery County there are 125 individuals that have signed up for the student loan forgiveness program. Montgomery county is a heavy manufacturing and trade county and a contributor to the Kansas economy. She noted workforce recruitment is the number one issue facing our area businesses and the ROZ program is a tool to help our area businesses to compete for employees. Ms. Purdon stated industry is looking at rural counties and announced that Montgomery County has a new occupant for a former Amazon Distribution Center (Attachment 6).
Written testimony for HB2721 was presented by:
Jim Zaleski, Economic Development Director, SE Kansas, (Attachment 7).
Chad Austin, Kansas Hospital Association, (Attachment 8).
Neutral:
David Soffer, Kansas Department of Commerce testified for HB2721 stating early in the session Secretary Toland provided a summary of a report for the ROZ student loan program. He noted there were over 30 counties that do not commit any resources to the program. Over 80% of student loan recipients in 2019 would have moved to the county without the program He stated the Commerce Department was unable to conduct surveys for individuals in the tax credit program. Currently the Commerce Department is looking at adjustment to make the program more efficient and effective for those that utilize it or want to utilize ROZ. He noted a new plan will be available in the beginning of the 2021 session (Attachment 9).
Hearing closed for HB2721.
