How long is the Kansas Rural Opportunity Zone income tax credit available after the 2015 extension?

Plain-English summary

Kansas Notice 15-09 explains that Section 27 of Senate Substitute for House Bill 2109 (2015) amended K.S.A. 79-32,267 to extend the Rural Opportunity Zone (ROZ) income tax credit.

What changed. As originally enacted, the credit applied to tax years commencing after December 31, 2011 and ending before January 1, 2017. The amendment extends the period to tax years ending before January 1, 2022.

The credit. It is a credit against a resident individual taxpayer's Kansas income tax liability, for those who establish domicile in a rural opportunity zone.

Domicile window. The deadline to establish domicile in a rural opportunity zone (after being domiciled outside Kansas for five or more years) was extended from before January 1, 2016 to before January 1, 2021.

What this means for you

People moving to a rural opportunity zone

• If you establish domicile in a ROZ before January 1, 2021 after five-plus years outside Kansas, the credit is available for tax years ending before January 1, 2022.

Common questions

What is the ROZ credit? A credit against a resident individual's Kansas income tax liability for establishing domicile in a designated rural opportunity zone.

How long was the credit extended? To tax years ending before January 1, 2022 (from before January 1, 2017).

When must domicile be established? Before January 1, 2021 (extended from before January 1, 2016).

Citations and references

• Senate Substitute for House Bill 2109 (2015), Section 27 -- amended K.S.A. 79-32,267 to extend the ROZ credit to tax years ending before January 1, 2022 and the domicile window to before January 1, 2021.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 15-09

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                      NOTICE 15-09

                     RURAL OPPORTUNITY ZONE CREDIT EXTENDED
                                  (JULY 1, 2015)

 During the 2015 Legislative Session Senate Substitute for House Bill 2109 was passed and

signed into law. This Bill extends the Rural Opportunity Zone income tax credit.

  As originally enacted, the provisions of K.S.A. 79-32,267 allowed a Rural Opportunity

Zone (ROZ) credit to be claimed for tax years commencing after December 31, 2011, and ending
before January 1, 2017. Section 27 of Senate Substitute for House Bill 2109 extends this period
to tax years ending prior to January 1, 2022. The amended provisions of the statute now state
(stricken language and new language):

        (a) For taxable years commencing after December 31, 2011, and before January
 1, 2017 2022, there shall be allowed as a credit against the tax liability of a resident
 individual taxpayer an amount equal to the resident individual's income tax liability
 under the provisions of the Kansas income tax act, when the resident individual:
        (1) Establishes domicile in a rural opportunity zone on or after July 1, 2011, and
 prior to January 1, 2016 2021, and was domiciled outside this state for five or more
 years immediately prior to establishing their domicile in a rural opportunity zone in
 this state;

                                  Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about this Notice, please contact:

                              Taxpayer Assistance Center
                             Kansas Department of Revenue
                             915 SW Harrison St., 1st Floor
                                Topeka, KS 66612-1588
                                  Phone: 785-368-8222
                                   Fax: 785-291-3614