HB 2469 expands a tax credit for railroad track maintenance in Kansas, allowing eligible businesses to apply the credit against income tax, premium taxes, or privilege fees - not just income tax as before. It directly affects class II/III railroads and rail siding owners (eligible taxpayers), as well as their customers (e.g., businesses using short-line rail) and vendors (e.g., maintenance service providers). Unused credits can be transferred to other businesses paying those specific taxes within five years, with a cap of $5,000 per mile of track or $5,000 per rail siding annually, and a total annual limit of $8.72 million. The bill changes how these credits are applied and shared, making them more flexible for qualifying rail-related businesses.
Kansas would join a federal tax credit program allowing individual taxpayers to deduct contributions to scholarship organizations supporting low-income students. The bill increases the tax credit percentage from 70% to 75% for contributions made after 2022 and raises the state's annual credit limit from $10 million to $20 million (with a potential maximum of $30 million). If credits claimed approach 75% of the annual limit, the cap automatically increases for the next year. This directly affects Kansas residents who donate to qualifying scholarship organizations, providing a larger tax incentive for such contributions.
HB 2445 creates a Kansas tax deduction for residents who pay expenses to health care sharing ministries (nonprofit organizations that facilitate voluntary medical expense sharing among members with shared beliefs, not insurance). It allows eligible Kansas taxpayers to subtract qualified health care sharing expenses (including membership fees and administrative costs) from their state income tax calculation. The bill also specifies that money received from these ministries to cover medical costs is not considered taxable income for Kansas tax purposes. This applies only to Kansas residents who are members of qualifying ministries for at least one month during the tax year, effective for tax years beginning after December 31, 2026.
SB 311 eliminates Kansas state income tax on specific types of overtime pay earned by workers. It modifies Kansas tax law to exclude "certain qualified overtime compensation" from taxable income when calculating state adjusted gross income. This means eligible workers will not pay state income tax on qualifying overtime earnings, directly affecting Kansas residents who receive this type of compensation. The bill amends K.S.A. 2025 Supp. 79-32,117 to add this exclusion as a subtraction modification.
HB 2235 integrates the Technology-Enabled Fiduciary Financial Institutions (TEFFI) Act into Kansas’ state banking code, directly affecting TEFFIs - digital financial institutions managing alternative assets like private equity funds. Key changes include reducing TEFFI charter application fees, requiring reports to the state bank commissioner, allowing digital certificates for asset ownership, and expanding the TEFFI income tax credit to include Kansas nonprofit corporations as qualified charities. The bill clarifies definitions for terms like "alternative asset custody account" and specifies that TEFFIs will be supervised by the state bank commissioner. These provisions aim to modernize regulatory oversight while streamlining operations for TEFFIs and supporting charitable giving through tax incentives.
SB 25 creates "insurance savings accounts" for Kansas residents and businesses, allowing them to save tax-advantaged funds specifically for property and casualty insurance costs. Account holders can contribute up to $6,000 annually (or $12,000 for joint filers, $25,000 for corporations) to pay insurance premiums and deductibles, with contributions excluded from taxable income. Funds withdrawn for non-eligible expenses (like general living costs) must be added back to taxable income. Accounts must be held at approved banks or credit unions, and users must maintain documentation for all eligible insurance expenses.
SB 283 lowers Kansas individual income tax rates starting January 1, 2026, and ends multiple tax credit programs. It discontinues credits for the High Performance Incentive Program, Kansas Affordable Housing Tax Credit, and payroll tax benefits from the Promoting Employment Across Kansas Act. The bill also repeals other targeted credits, including those for environmental compliance, agritourism liability insurance, and abandoned well plugging. These changes directly affect Kansas taxpayers and businesses that previously claimed these specific tax credits.
HB 2058 increases the income threshold for Kansas seniors to qualify for the Selective Assistance for Effective Senior Relief (SAFESR) tax credit. It raises the limit from the previous 120% of the federal poverty level to $28,000 in household income for tax years 2025 and beyond, with future annual increases tied to the federal cost-of-living adjustment. The credit allows eligible seniors aged 65+ who own their primary residence to claim 75% of their property taxes paid, up to the credit limit. This directly affects low-income senior homeowners who meet the new income requirement, replacing the prior eligibility standard. The bill amends Kansas tax law to implement this change, effective January 2025.
HB 2059 allows Kansas taxpayers to subtract payments made to health care sharing ministries from their state adjusted gross income. This change directly affects Kansas residents who are members of these ministries and pay for medical expenses through them. The bill amends Kansas tax code to add a new subtraction provision (replacing the existing section) for these payments, similar to how other health-related expenses are treated. This provides a tax benefit by reducing taxable income for qualifying individuals in Kansas.
HB 2189 would amend Kansas tax law to allow property owners to subtract compensation received from the sale or government seizure (eminent domain) of their property from their state income tax calculation. This change directly affects Kansas residents and businesses who have property taken for public projects like roads, schools, or infrastructure. The bill adds a new subtraction to the calculation of Kansas adjusted gross income, reducing taxable income for these property owners. This adjustment provides a specific tax relief for the unique financial impact of eminent domain proceedings without altering broader tax rates.
