Bill > SB268

This bill makes several technical modifications to Kansas income tax law, primarily focusing on three key areas: business interest expenses, federal net operating loss carrybacks, and adoption savings accounts. Specifically, the bill clarifies how certain business interest expenses that were previously disallowed under federal tax code can be treated for Kansas income tax purposes, allowing taxpayers to potentially subtract these expenses from their adjusted gross income in certain circumstances. For federal net operating losses arising between 2017 and 2021, the bill provides a mechanism for taxpayers to carry back and deduct these losses on their Kansas tax returns, with provisions for carrying forward unused amounts. Additionally, the bill updates the rules for adoption savings accounts, creating a new subtraction modification that allows individuals to deduct up to $6,000 (or $12,000 for married couples filing jointly) contributed to these accounts, and specifying how income earned in these accounts and potential recaptured funds will be treated for tax purposes. The changes are primarily technical in nature, aimed at aligning Kansas tax law with recent federal tax changes and providing clearer guidelines for taxpayers.

Budget and Finance

Assessment and Taxation (Senate)

https://kslegislature.gov/li/b2025_26/measures/sb268/