Kansas lawmakers want to cut tax credit

Critics of the affordable housing tax credit argue it is costing Kansas too much money. But supporters say it’s helping construct new homes amid a housing shortage that’s driving up the costs of homes and contributing to homelessness.

TOPEKA — Kansas lawmakers want to eliminate a tax credit that aims to build affordable homes throughout the state. They say the program costs too much money, despite an ongoing housing shortage.

The 3-year-old Kansas incentive offers state tax credits over a 10-year period that matches what the federal government offers for affordable housing construction. Republican Rep. Sean Tarwater of Stilwell, who proposed a bill to cut the program, said lawmakers created the state’s portion of the credit in 2022 without understanding the full fiscal impact.

He said the program could cost the state billions of dollars over the 10-year lifespan of each awarded credit.

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