TOPEKA — Gov. Laura Kelly has signed a bill expanding Kansas tax credits to encourage the purchase of services and goods from businesses that employ people with disabilities and to create a program to help businesses transition to paying people with disabilities at or above the minimum wage.
The reforms, aimed at improving employment prospects for Kansans with disabilities, are included in Senate Bill 15, which passed 34-0 in the Senate and 117-1 in the House last month.
“Kansans with disabilities deserve to receive a fair wage for the work they do,” Kelly said. “I will sign this bipartisan bill to create more opportunities for people with disabilities, increase our workforce and ensure all Kansans can work with dignity and respect.”
The legislation would prevent businesses from receiving the disability employment tax credit if they pay disabled Kansans less than the minimum wage, a program that would provide a total of $8 million in tax credits for the 2024-2028 tax years.
Rep. Shawn Tarwater, a Republican from Stilwell, said the $1 million grant program will help sheltered workshop employers who are allowed to pay subminimum wage evolve into integrated employment environments where workers are paid the minimum wage.
State subsidies to help raise wages for disabled people must be matched by employers in sheltered workshops.
“By providing incentives to businesses that buy products from companies with integrated workforces, we are creating more jobs for Kansans with disabilities,” Tarwater said. “This will increase our workforce and boost local economies across the state.”
The bill defines a workshop employer as a private, nonprofit, state, or local government entity that employs individuals with intellectual, developmental, or physical disabilities.
Additionally, the law eliminated minimum work hour requirements for disabled Kansans to receive health insurance coverage.
“The Disability Employment Act and the Sheltered Workplace Transition Grant Program are a win-win for Kansans with disabilities and businesses,” said Martha Gabehart, executive director of the Kansas Commission on Disability Issues.