New Legislation Aims to Expand Tax Credit
Lawmakers in Kansas are pushing for legislation to expand the tax credit for employers who hire disabled workers. Previously, the tax credit only covered purchases from employers paying at least the minimum wage. However, with the tax credit set to expire at the start of this year, lawmakers reviewed and revised the legislation.
A Controversial Proposal Sparks Debate
The initial proposal aimed to allow nonprofit groups with sheltered workshops to create separate divisions that paid at least the minimum wage. This would have allowed people or businesses purchasing from those divisions to claim the tax credit. Proponents of the proposal saw it as a way to increase employment opportunities for disabled workers. However, it faced opposition from disabled rights groups who argued that it would encourage wages below the minimum wage.
A Compromise Solution
To address the concerns raised by disabled rights groups, a compromise was reached last year. Instead of pursuing the initial proposal, the legislation introduced a grant program. However, due to conflicts with other provisions in an omnibus tax-cut bill, the grant program was vetoed by Democratic Gov. Laura Kelly. As a result, the tax credit expired at the beginning of this year.
A Step in the Right Direction
Despite the setback, a new bill has been introduced this year to reinstate the tax credit. The bill is designed to allow people to still claim the tax credit when filing their 2023 returns. This compromise has been viewed as a positive step by Neil Romano, a member of the National Council on Disability. However, the fate of the bill remains uncertain until Gov. Kelly makes her decision, although she typically supports measures with near-universal support.
Moving Away from Below-Minimum-Wage Jobs
Nationally, employers are increasingly moving away from paying below the minimum wage to disabled workers. Data from the U.S. government shows a significant decline in the number of employers with Department of Labor certificates authorizing below-minimum-wage jobs. In Kansas, there are still 17 groups with such certificates, indicating that there is work to be done to eliminate below-minimum-wage jobs.
Support for Inclusive Job Policies
Fourteen states, including Virginia, have banned below-minimum-wage jobs for disabled workers, according to the Association of People Supporting Employment First. In Kansas, there is a growing recognition that more needs to be done to promote inclusive job policies. While the reinstatement of the tax credit is seen as a positive development by advocates like Sara Hart Weir, executive director of the Kansas Council on Developmental Disabilities, concerns remain about the lack of specificity in the legislation regarding the transition away from below-minimum-wage pay.
Avoiding Pitfalls and Ensuring Progress
Rocky Nichols, executive director of the Disability Rights Center of Kansas, expressed concerns that the legislation might become a “slush fund” for sheltered workshops if not implemented with clear guidelines and timelines for transitioning away from below-minimum-wage pay. As the bill awaits a decision from Gov. Kelly, stakeholders continue to emphasize the need for careful implementation to ensure progress in expanding employment opportunities for disabled workers.
