Kansas is poised to expand an income tax credit for goods and services purchased from companies and nonprofits employing disabled workers, a year after a debate over how much the state should buck a national trend against paying those workers below the minimum wage.
A bill approved by the Legislature this week with broad bipartisan support would increase the total tax credits available from $5 million a year to $8 million. It also would create a new, $1 million program for nonprofit groups running vocational programs known as sheltered workshops to help them start paying workers at least the federal minimum wage of $7.25 an hour.
The tax credit had previously only covered purchases from employers paying at least the minimum wage, and lawmakers reviewed it last year because it was set to expire at the start of this year.
It’s the Legislature’s latest attempt to expand the tax credit.
Their first proposal would have allowed nonprofit groups with sheltered workshops to form separate divisions paying at least the minimum wage so that people or businesses buying from those divisions could claim the tax credit. Backers saw it as an opportunity to expand the reach of the tax credit and therefore employment opportunities for disabled workers.