SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 81
As Recommended by Senate Committee on
Assessment and Taxation
Brief*
SB 81 would enact subtraction modifications in
determining Kansas adjusted gross income equal to 25.0
percent of the amount of federal disallowance related to the
Work Opportunity Tax Credit and similar credits under section
280C of the federal Internal Revenue Code and, effective for
tax year 2020 and all years thereafter, 25.0 percent of the
amount of federal disallowance related to the Employee
Retention Tax Credit.
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 a representative of the Kansas Restaurant
and Hospitality Association, generally stating the bill would
allow employers who benefit from federal tax credits to still be
able to deduct otherwise deductible expenses on their state
income taxes.
No other testimony was provided.
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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 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget, the Department of Revenue indicates enactment
of the bill would reduce State General Fund receipts by $7.0
million in FY 2024, $2.5 million in FY 2025, and $1.1 million in
FY 2026. Any fiscal effect associated with the bill is not
reflected in The FY 2024 Governor’s Budget Report.
Taxation; income tax; disallowance; subtraction modification; work opportunity tax
credit; employee retention tax credit
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