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Kansas Department of Commerce to Administer Rural Business Growth Program and Premium Tax Credits

Original title: AN ACT concerning economic development; enacting the Kansas rural business growth program act; establishing a premium tax credit program to be administered by the secretary of commerce for the purpose of incentivizing capital investment in rural areas.

Last action · April 10, 2026: Died in Committee

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

The Kansas Legislature introduced the Kansas Rural Business Growth Program Act to offer s to investors who fund rural businesses through certified rural funds, administered by the Kansas Department of Commerce. The bill sets a cap of $7,500,000 in annual tax credits and requires rural funds to invest 100% of their capital within two years.

Why it matters

Insurance companies and other taxpayers could claim state s worth up to $7,500,000 annually in exchange for backing investments in smaller Kansas businesses.

Background
  • State-level rural business growth acts modeled on federal small business programs have been introduced in multiple states to stimulate private equity investment in non-urban areas. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

rural investors

Rural investors receive earned and vested tax credits against their state tax liability upon making a capital investment in a certified rural fund.

Directly affected

insurance companies

Insurance companies claiming tax credits against state premium or retaliatory tax liabilities are not required to pay additional penalties or taxes as a result of claiming the credit.

Directly affected

eligible businesses

Eligible businesses in rural or qualifying areas may receive qualified equity investments or loans to support their operations and job creation.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who is eligible to receive investments under this program?
An eligible business must have fewer and 250 employees and either principal business operations in a Kansas rural area, operate within specified NAICS sectors, or be determined by the department to be beneficial to rural economic growth.
What happens if a rural fund fails to meet its investment requirements?
The Kansas Department of Commerce may recapture the credits, provided the rural fund is given written notice and a six-month period to cure the noncompliance.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died in committee.

Procedural history

4 actions
  1. Apr 10, 2026House
    Died in Committee
  2. Feb 9, 2026House
    Hearing: Monday, February 9, 2026, 3:30 PM — Room 346-S
  3. Jan 26, 2026HouseIntroduced
    Introduced
  4. Jan 26, 2026HouseCommittee
    Referred to House Committee on Taxation

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Establishment of Tax Credit Program for Rural Funds

The bill proposes a structured framework for leveraging private capital through tax credits administered by the Kansas Department of Commerce.

Connected Entities

Kansas Department of Commerce, House Committee on Taxation
OrganizationKansas Department of Commerce“Administers the rural business growth program and certifies capital investments.”Map →
OrganizationHouse Committee on Taxation“Sponsoring committee for House Bill 2541.”Map →

Sources

Open source document

www.kslegislature.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 60)
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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