The bill amends Kansas tax law to revise the apportionment of business income for manufacturers of alcoholic liquor, distinguishing between "qualifying Kansas investors" and general manufacturers. Starting January 1, 2027, qualifying Kansas investors will utilize a single sales factor method for apportioning business income, provided they meet specific criteria, such as maintaining an average value of real and tangible personal property exceeding $5,000,000 and total compensation paid in the state exceeding $2,000,000. In contrast, general manufacturers will continue using the existing three-factor formula. The bill also allows the secretary of revenue to adopt necessary rules and regulations for implementation and removes obsolete references to global intangible low-taxed income.

Additionally, the bill introduces a deferred tax impact deduction for publicly traded companies, effective July 1, 2025, to offset changes in net deferred tax liabilities or assets due to the new apportionment requirements. Taxpayers must file a statement by July 1, 2027, to claim this deduction, calculated based on specified formulas. The legislation also modifies Kansas adjusted gross income calculations for individuals, clarifying the treatment of certain income types and establishing guidelines for contributions to first-time home buyer and adoption savings accounts. Overall, the bill aims to streamline the tax code and provide clarity and relief to both manufacturers and individual taxpayers in Kansas.

Statutes affected:
As Introduced: 9-2301, 9-701
As Amended by House Committee: 9-2301, 9-701
Conference Committee Report - Fri, Apr 10, 2026: 79-3279, 79-32
Enrolled: 79-32, 79-3279
As introduced: 9-2301, 9-701
Conference Committee Report - Fri, Apr 10, 2026 - Amd to SB300: 79-3279, 79-32