The bill establishes the Kansas Employee Emergency Savings Account Program, designed to help eligible employers recruit and retain employees by promoting the creation of employee emergency savings accounts. This program will be active from taxable years 2025 through 2027 and is open to employers with no more than 250 employees. Participating employers must apply to the secretary of commerce and are required to make an initial deposit of at least $50 into each employee's savings account, with the option for additional matching contributions. Employers are also mandated to provide financial literacy tools and annual statements to employees regarding their savings. Additionally, the bill introduces a tax credit for these employers, allowing them to claim 50% of initial deposits and 25% of additional deposits, subject to maximum credit limits per employee.

Moreover, the bill modifies the Kansas tax code by allowing contributions to first-time home buyer and adoption savings accounts, with specific contribution limits set for individuals and married couples. It also permits taxpayers to apply early contributions to the previous taxable year if elected at the time of filing. The bill addresses the treatment of interest expenses disallowed under federal law, allowing them to be considered deductible in the first taxable year they would have been without limitations. Furthermore, it repeals K.S.A. 2024 Supp. 79-32,117, indicating an update or replacement of previous provisions. These changes aim to enhance tax benefits for individuals saving for homes and adoptions while clarifying the treatment of certain interest expenses in relation to federal tax law.

Statutes affected:
As introduced: 79-32