Did Kansas extend the Rural Opportunity Zone income tax credit and student loan program?

Plain-English summary

Kansas Notice 22-08 explains that 2022 House Bill 2239 (Sections 31 and 43) extended the Rural Opportunity Zone (ROZ) program -- both the student loan repayment assistance and the income tax credit.

Student loan repayment (Section 31, K.S.A. 74-50,223). The cutoff date for an individual to enroll and be eligible for the ROZ student loan repayment assistance provision is extended from June 30, 2023 to June 30, 2026. Questions about that provision go to the Department of Commerce.

Income tax credit (Section 43, K.S.A. 79-32,267). The ROZ individual income tax credit had been available for tax years commencing after December 31, 2011 and ending before January 1, 2024. The cutoff is now extended so the credit is available for tax years ending before January 1, 2027. The bill also extends the period during which a taxpayer may establish domicile in Kansas from January 1, 2023 to January 1, 2026.

All other provisions of Kansas law regarding rural opportunity zones remain unchanged. To claim the ROZ tax credit, a taxpayer must file electronically and complete Form K-89.

What this means for you

People moving to a rural opportunity zone county

• If you establish Kansas domicile in a ROZ county, you now have until January 1, 2026 to do so and can claim the income tax credit for tax years ending before January 1, 2027.
• You can also enroll in the ROZ student loan repayment assistance program through June 30, 2026 (administered by the Department of Commerce).
• Claim the tax credit by filing your Kansas return electronically and completing Form K-89.

Common questions

What was extended? The ROZ student loan repayment enrollment cutoff (to June 30, 2026) and the ROZ income tax credit (to tax years ending before January 1, 2027).

How long do I have to establish domicile? Until January 1, 2026.

How do I claim the credit? File electronically and complete Form K-89.

Who handles the student loan program? The Kansas Department of Commerce.

Citations and references

• House Bill 2239 (2022), Sections 31 and 43 -- extended the Rural Opportunity Zone program.
• K.S.A. 74-50,223 -- ROZ student loan repayment assistance; enrollment cutoff extended to June 30, 2026.
• K.S.A. 79-32,267 -- ROZ individual income tax credit; extended to tax years ending before January 1, 2027, with domicile establishment extended to January 1, 2026.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 22-08

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 22-08

                      RURAL OPPORTUNITY ZONE CREDIT EXTENDED

                                    (OCTOBER 4, 2022)

   During the 2022 Legislative Session House Bill 2239 was passed and signed into law.

Sections 31 and 43 of the Bill extend the rural opportunity zone student loan repayment program
and the Kansas income tax credit.

   Section 31 amends K.S.A. 74-50,223 to extend the time available for an individual to enroll

and be eligible to participate in the student loan repayment assistance provision provided under
the rural opportunity zone program. The cut-off date is extended from June 30, 2023, to June 30,
2026. Questions regarding the student loan repayment assistance provision may be directed to the
Department of Commerce through their website: https://www.kansascommerce.gov.

   Section 43 amends K.S.A. 79-32,267 to extend the rural opportunity zone individual income

tax credit. The credit had been available for tax years commencing after December 31, 2011, and
ending before January 1, 2024. The cut-off date has now been extended to include tax years ending
before January 1, 2027. It also extends the period during which a taxpayer may establish domicile
in Kansas from January 1, 2023, to January 1, 2026.

   All other provisions of Kansas law regarding rural opportunity zones remains unchanged.

 To claim the rural opportunity zone tax credit a taxpayer must file electronically and

complete Form K-89 as part of the filing process.

   Additional information is available at: https://ksrevenue.gov/prtaxcredits-roz.html.

                               TAXPAYER ASSISTANCE

 Additional copies of this notice, forms or publications are available from our web site,

www.ksrevenue.gov. If you have questions about this Notice, please contact:

                            Taxpayer Assistance Center
                           Kansas Department of Revenue
                           Scott Office Building, 1st Floor
                                  120 SE 10th Ave
                                   P. O. Box 3506
                              Topeka, KS 66601-3506
                                Phone: 785-368-8222
                                 Fax: 785-291-3614