Tax & AccountingFebruary 25, 2019

Kansas Senate Passes TCJA Response


Kansas Senate Passes TCJA Response

The Kansas Senate has passed legislation responding to the federal Tax Cuts and Jobs Act of 2017 (TCJA) (P.L. 115-97). The legislation makes a number of changes to Kansas corporate and personal income tax provisions, including:

  • providing option for personal income taxpayers to take Kansas itemized deductions regardless of whether itemized deductions are claimed for federal tax purposes;
  • allowing the filing of amended returns through December 31, 2019, for taxpayers that elect to use Kansas itemized deductions instead of the Kansas standard deduction for tax year 2018;
  • decoupling from repatriation transition tax provisions under IRC Sec. 965 for tax years after 2016;
  • decoupling from global intangible low-taxed income (GILTI) provisions under IRC Sec. 951A for tax years after 2017;
  • requiring an addition for any deduction claimed under IRC Sec. 250(a)(1)(B);
  • exempting certain disallowed business interest under IRC Sec. 163(j) in effect on January 1, 2018;
  • requiring an addition for amounts deducted because of a carryforward of disallowed business interest under IRC Sec. 163(j) for tax years after 2017; and
  • excluding certain capital contributions under IRC Sec. 118 from Kansas income taxation for tax years after 2017.

S.B. 22, as passed by the Kansas Senate on February 7, 2019

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