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. Participating employers must make an initial deposit of at least $50 into each employee's savings account and can make additional contributions. The bill emphasizes the importance of financial literacy, requiring employers to provide resources to assist employees in managing their savings. Additionally, it introduces a tax credit for these employers, allowing them to claim a credit against their tax liability for contributions made to employee savings accounts, with specific percentages and limits outlined.

Moreover, the bill modifies the Kansas tax code to include provisions for contributions to first-time home buyer and adoption savings accounts, setting contribution limits for individuals and married couples. It also allows contributions made early in the year to be applied to the previous tax year if elected during filing. The bill repeals K.S.A. 2024 Supp. 79-32,117, indicating a potential update or consolidation of tax provisions. These changes will take effect upon publication in the statute book, providing clarity and tax relief for individuals saving for homes and adoptions while addressing specific deductions related to federal tax regulations.

Statutes affected:
As introduced: 79-32