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.

Previously Filed As

KS HB2757

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

KS SB494

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

KS HB2416

Senate Substitute for HB 2416 by Committee on Assessment and Taxation - Enacting the adoption savings account act, allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act.

KS HB2465

Enacting the adoption savings account act allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act, increasing the income tax credit amount for adoption expenses, establishing an income, privilege and premium tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities and providing for a sales tax exemption for purchases by pregnancy resource centers and residential maternity facilities.

KS HB2064

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 HB2197

Providing a procedure for the distribution of a first-time home buyer savings account balance upon the death of an account holder, changing the term "transfer on death" to "payable on death" and resolving a conflict when beneficiaries differ on a financial institution's account records and tax forms required by the secretary of revenue.

KS HB2011

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

KS HB2534

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

KS SB126

Providing an individual income tax credit for certain residential solar and wind energy property expenditures, a subtraction modification to permit the carryforward of certain net operating losses for individuals and a subtraction modification for the federal work opportunity tax credit and the employee retention credit disallowances.

KS SB306

Including losses from investments in technology-enabled fiduciary financial institutions in Kansas adjusted gross income for income tax purposes.

Similar Bills

KS HB2197

Providing a procedure for the distribution of a first-time home buyer savings account balance upon the death of an account holder, changing the term "transfer on death" to "payable on death" and resolving a conflict when beneficiaries differ on a financial institution's account records and tax forms required by the secretary of revenue.

KS SB126

Providing an individual income tax credit for certain residential solar and wind energy property expenditures, a subtraction modification to permit the carryforward of certain net operating losses for individuals and a subtraction modification for the federal work opportunity tax credit and the employee retention credit disallowances.

KS SB277

Exempting certain qualified tips from state income tax.

KS SB306

Including losses from investments in technology-enabled fiduciary financial institutions in Kansas adjusted gross income for income tax purposes.

KS SB110

Exempting all social security benefits from Kansas income tax.

KS SB40

Permitting the carryforward of certain net operating losses for individuals for Kansas income tax purposes and excluding social security payments from household income and increasing the appraised value and household income thresholds for eligibility of seniors and disabled veterans related to increased property tax homestead claims.

KS SB360

Allowing a taxpayer to elect the taxable year in which a subtraction modification for contributions to a 529 program account, ABLE account or first-time home buyer savings account would be applied and authorizing the state treasurer to appoint a 529 program advisory committee.

KS HB2189

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