Kansas 2025-2026 Regular Session

Kansas Senate Bill SB268

Introduced
2/13/25  

Caption

Clarifying modifications for certain business interest expenses and federal net operating loss carrybacks and providing a technical change to a statutory cross reference for recaptured moneys related to adoption savings accounts for purposes of Kansas income tax.

Impact

The bill will directly affect how individual taxpayers and businesses calculate their Kansas adjusted gross income. By providing clearer guidelines for modifications related to business interest expenses and net operating loss deductions, the legislation aims to reduce ambiguity and potential conflicts when filing state taxes. The changes could potentially ease the tax burden on businesses that utilize net operating loss carrybacks while ensuring state revenue is maintained, as businesses adjust their financial practices to the new guidelines.

Summary

Senate Bill No. 268 is a legislative proposal that seeks to amend existing laws related to income taxation in the state of Kansas, particularly focusing on adjustments to Kansas adjusted gross income of individuals. The bill introduces clarification on modifications concerning certain business interest expenses and recaptures from federal net operating loss carrybacks. Such modifications aim to align state tax laws more closely with the recent changes in federal tax legislation, thereby ensuring consistency in how business expenses are treated under state law.

Contention

There are notable points of contention surrounding the bill, particularly concerning the implications of recaptured moneys related to adoption savings accounts. Critics may argue that the penalties for withdrawal of funds within certain time frames could discourage the use of such accounts. Proponents, however, may assert that these stipulations are necessary to prevent misuse of the savings accounts intended for specific designated purposes. The balance between facilitating tax benefits for businesses while safeguarding state revenue and the integrity of savings programs is likely to be a key aspect of the ongoing discussion about SB268.

Companion Bills

No companion bills found.

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