Kansas 2025-2026 Regular Session

Kansas Senate Bill SB268

Introduced

2/13/25

Refer

2/14/25

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.

Latest SB268 Activity

Companion Bills

No companion bills found.

Similar Bills

KS SB277

Exempting certain qualified tips from state income tax.

KS HB2189

Providing an income tax subtraction modification for sales or taking of property subject to eminent domain.

KS HB2036

Providing a Kansas income tax subtraction modification for certain amounts received as compensation for members of the armed forces.

KS SB39

Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.

KS HB2059

Providing a Kansas income tax subtraction modification for certain amounts paid by the taxpayer during the taxable year as a member of a health care sharing ministry.

KS SB25

Enacting the insurance savings account act, allowing individuals and corporations to establish insurance savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications under the Kansas income tax act.

KS HB2090

Establishing the Kansas employee emergency savings account (KEESA) program to allow eligible employers to establish employee savings accounts, providing an income and privilege tax credit for certain eligible employer deposits to such employee savings accounts and providing a subtraction modification for certain employee deposits to such savings accounts.

KS HB2156

Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.