Which Kansas counties are rural opportunity zones now, and how long does the ROZ credit last?

Plain-English summary

Kansas Notice 21-05 explains that 2021 Senate Bill 47 (Sections 11, 12, and 15) expanded and extended the Rural Opportunity Zone (ROZ) program.

Which counties qualify (Section 11 -- K.S.A. 74-50,222). Instead of naming specific counties, the amendment defines a "rural opportunity zone" as "a county with a population of 40,000 or less." This includes 95 of Kansas's 105 counties. The 10 counties that do NOT qualify are: Butler, Douglas, Johnson, Leavenworth, Reno, Riley, Saline, Sedgwick, Shawnee, and Wyandotte.

Student loan repayment assistance (Section 12 -- K.S.A. 74-50,223). The cut-off date for an individual to enroll and be eligible for the ROZ student loan repayment assistance is extended from June 30, 2021, to June 30, 2023.

Income tax credit (Section 15 -- K.S.A. 79-32,267). The ROZ individual income tax credit -- available for tax years commencing after December 31, 2011, and previously ending before January 1, 2022 -- has its cut-off extended to include tax years ending before January 1, 2024.

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

What this means for you

People moving to rural Kansas

• If you move to one of the 95 qualifying counties (population 40,000 or less), you may qualify for the ROZ individual income tax credit, now available through tax years ending before January 1, 2024.
• Check whether your county is one of the 10 excluded (Butler, Douglas, Johnson, Leavenworth, Reno, Riley, Saline, Sedgwick, Shawnee, Wyandotte).

People with student loans

• The enrollment cut-off for ROZ student loan repayment assistance was extended to June 30, 2023.

Tax preparers

• The definition of a rural opportunity zone is now population-based (40,000 or less), so eligibility no longer depends on a fixed county list.

Common questions

How is a rural opportunity zone defined now? As a county with a population of 40,000 or less -- 95 of Kansas's 105 counties.

Which counties are excluded? Butler, Douglas, Johnson, Leavenworth, Reno, Riley, Saline, Sedgwick, Shawnee, and Wyandotte.

How long is the income tax credit available? For tax years commencing after 2011 and ending before January 1, 2024.

What happened to the student loan assistance deadline? The enrollment cut-off was extended from June 30, 2021, to June 30, 2023.

Citations and references

• Senate Bill 47 (2021), Sections 11, 12, and 15 -- expanded and extended the Rural Opportunity Zone program.
• K.S.A. 74-50,222 -- defines a rural opportunity zone as a county with a population of 40,000 or less.
• K.S.A. 74-50,223 -- ROZ student loan repayment assistance; enrollment cut-off extended to June 30, 2023.
• K.S.A. 79-32,267 -- ROZ individual income tax credit; extended to tax years ending before January 1, 2024.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 21-05

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.org
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 21-05

        RURAL OPPORTUNITY ZONE CREDIT EXPANDED AND EXTENDED
                                       (JULY 1, 2021)

  During the 2021 Legislative Session Senate Bill 47 was passed and signed into law. Sections

11, 12 and 15 of the Bill amend Kansas law dealing with rural opportunity zone credits.

   Section 11 amends K.S.A. 74-50,222, which defines the term "rural opportunity zone".

Rather than naming the counties that qualify as a rural opportunity zone, the amendment defines
the term "rural opportunity zone" to mean "a county with a population of 40,000 or less." The
effect of this amendment is to include 95 of Kansas' 105 counties as rural opportunity zones. The
10 counties that DO NOT fall within the definition are: Butler, Douglas, Johnson, Leavenworth,
Reno, Riley, Saline, Sedgwick, Shawnee, and Wyandotte.

   Section 12 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, 2021 to June 30,
2023.

   Section 15 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, 2022. The cut-off date has now been extended to include tax years ending
before January 1, 2024.

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

   Additional information is available at: https://ksrevenue.org/prtaxcredit-roz.html

                                  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
                              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