The bill establishes the Kansas Employee Emergency Savings Account Program, designed to help eligible employers attract and retain employees by incentivizing contributions to 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. To participate, employers must apply to the secretary of commerce and make an initial deposit of at least $50 into each employee's savings account, with the option for additional matching contributions. Employers are also required to provide financial literacy resources and annual statements to employees regarding their savings.

In addition to the savings program, the bill introduces a tax credit for participating employers, allowing them to claim 50% of initial deposits and 25% of additional contributions as a credit against their tax liability, with specific caps on the maximum credit amounts. The bill also modifies the Kansas tax code to include provisions for contributions to first-time home buyer and adoption savings accounts, with defined limits for individuals and married couples. It allows taxpayers to apply early contributions to the previous taxable year and addresses the treatment of certain interest expenses. Furthermore, the bill repeals K.S.A. 2024 Supp. 79-32,117, indicating a comprehensive update to the state's tax regulations related to these financial activities.

Statutes affected:
As introduced: 79-32