The bill amends K.S.A. 2025 Supp. 79-3279 to revise the apportionment of business income for manufacturers of alcoholic liquor in Kansas, with significant changes set to take effect for tax years beginning January 1, 2027. It introduces a single sales factor method for qualifying Kansas investors, contingent upon meeting specific criteria related to property value and compensation, while general manufacturers will continue to utilize the existing three-factor formula based on property, payroll, and sales. The bill also establishes a deferred tax impact deduction exclusively for publicly traded companies, which will be available under certain conditions starting July 1, 2025.

Key deletions from current law include the removal of the ten-year election period for apportionment methods and the previous three-factor formula for manufacturers. The bill defines a "net deferred tax asset" in accordance with generally accepted accounting principles and empowers the secretary of revenue to create necessary regulations for implementing these changes. Additionally, it repeals the prior statute related to the apportionment of business income for manufacturers of alcoholic liquor, aiming to streamline the taxation process and provide incentives for qualifying businesses in Kansas.

Statutes affected:
As introduced: 79-3279