The bill establishes the Kansas Employee Emergency Savings Account Program, designed to help eligible employers attract and retain employees by promoting contributions to employee emergency savings accounts. This program will be available for taxable years 2025 through 2027 and is open to employers with up to 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. Employees can choose to participate and set up payroll deductions for their accounts, which must be federally insured and accessible online and via mobile banking. The bill also introduces a tax credit for employers, allowing them to claim 50% of initial deposits and 25% of additional deposits, subject to maximum credit limits per employee.

In addition to the savings account program, the bill modifies the Kansas tax code to enhance deductions and contributions related to various savings accounts, including first-time home buyer and adoption savings accounts, with specific contribution limits. It allows taxpayers to apply early-year contributions to the previous taxable year if they elect to do so when filing their returns. The bill also addresses the treatment of interest expenses disallowed under federal law, permitting them to be considered paid or accrued in the first taxable year they would have been deductible without federal limitations. Furthermore, it repeals K.S.A. 2024 Supp. 79-32,117, indicating a consolidation or update of existing tax provisions. These changes aim to improve tax benefits for individuals saving for homes and adoptions while clarifying certain deductions related to interest expenses.

Statutes affected:
As introduced: 79-32