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Minutes for SB282 - Committee on Taxation
Short Title
Providing income tax credits for aerospace and aviation program graduates and their employers.
Minutes Content for Wed, Mar 16, 2022
Chairperson Smith opened the hearing for SB282.
Adam Siebers, Assistant Revisor, provided an overview for SB282 that would create a new income tax credit for graduates of aerospace and aviation related educational programs and their employers beginning in tax year 2022 through tax year 2026. The bill allows a qualified employer whose principal business activity is in the aviation sector to receive a non-refundable 50.0 percent income tax credit for the amount of tuition reimbursed to a qualified employee. The tax credit can only be claimed if the qualified employee, within one year of starting employment, has earned an undergraduate or graduate degree in engineering or a technical degree or certificate that prepares the graduate for employment with a qualified employer. The tax credit can be claimed for up to four years if the qualified employee remains employed with the qualified employer. The credit cannot exceed $15,000 annually for each qualified employee and the third credit would be for a taxpayer who becomes a qualified employee during the tactical year would be allowed a credit in the amount equal to $5,000 and may be carried forward for four years.
Kathleen Smith, Kansas Department of Revenue provided an overview on the fiscal note for SB282 noting KDOR assumes that 500 new graduates from in-state institutions earning $52,000 annually could qualify for the income tax credit for themselves and their employer. The bill can reduce the State General Fund revenues by approximately $7.9 million beginning in FY2023 and ending in FY2027 by allowing three new income tax credits. The income tax credit for tuition reimbursements would cost approximately $2.8 million, the income tax credit for compensation paid to a qualified employee would cost approximately $2.6 million, and the income tax credit for qualified employee would cost approximately $2.5 million.
Proponents:
Philip Gilman, Director of Tax Policy, Sugar Creek Capital, testified as a proponent for SB282. (Attachment 1)
Jason Watkins, The Chamber, testified as a proponent for SB282. (Attachment 2)
Derek Lee, Investor/Developer, Building Kansas, LLC, testified as a proponent for SB282. (Attachment 3)
Mark Tomb, Kansas Association of Realtors, testified as a proponent for SB282. (Attachment 4)
Alex Johnson, Advantage Capital, testified as a proponent for SB282. (Attachment 5)
Ross Vogel, Heartland Housing Partners, testified as a proponent for SB282. (Attachment 6)
Alex Orel, Vice President, Government Relations, Kansas Bankers Association, testified as a proponent for SB282. (Attachment 7)
Written testimony was submitted by the following as proponents for SB282:
Eric Stafford, Kansas Chamber, (Attachment 8)
Allie Devine, Devine, Donley & Murray, Governmental Affairs, (Attachment 9)
Douglas Scott, Textron Aviation, (Attachment 10)
Martha Smith, Kansas Manufactured Housing Association, (Attachment 11)
Jay Hohl, Spirit AeroSystems, (Attachment 12)
Matt Gillam, Kansas Housing Association, (Attachment 13)
Written Testimony was submitted by the following as an opponent to SB282.
Mike O'Neal on behalf of Kansas Policy Institute, (Attachment 14)
Chairperson Smith closed the hearing for SB282.
