SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 40
As Recommended by Senate Committee on
Assessment and Taxation
Brief*
SB 40 would create a subtraction modification allowing
taxpayers who carried back federal net operating losses in
tax year 2018 through 2020 pursuant to the federal CARES
Act to subtract such amounts from their income for purposes
of determining Kansas adjusted gross income. Taxpayers
would be permitted to carry forward such net operating loss
for up to 20 years if the amount exceeds the Kansas adjusted
gross income of the taxpayer.
The bill would extend the deadline for eligible taxpayers
to file amended returns for tax years 2018 through 2020 until
April 15, 2025.
Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by representatives of BridgeBuilder Tax and
Legal Services and the National Federation of Independent
Businesses. Proponents stated the bill would allow Kansas
taxpayers to benefit from 2020 changes to the federal tax
code.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department of Revenue estimates
enactment of the bill would reduce State General Fund
receipts by $8.4 million in FY 2024 and $8.4 million in FY
2025. The bill would have no fiscal effect after those years.
Any fiscal effect associated with the bill is not reflected in The
FY 2024 Governor’s Budget Report.
Taxation; income tax; net operating losses; carry back; carry forward
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