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Minutes for HB2490 - Committee on Taxation

Short Title

Kansas corporation NOL carryforward extension.

Minutes Content for Mon, Feb 10, 2020

Adam Siebers, Assistant Revisor provided an overview for HB2490 stating the bill amends the corporate NOL provisions whereby there is a 10-year carry forward provision for corporate net operating loss.  HB2490 would extend the net operating loss carried forward period to 20 years beginning in tax year 2018. The  net operating loss would be the lesser of the aggregate Kansas net operating loss carryover of 80% Kansas taxable income computed without allowable net operating loss deduction.

Kathleen Smith, Department of Revenue provided an overview on the fiscal note for HB2490  stating the bill would reduce the State General Fund revenue by approximately $1.4 million in tax year 2029 or FY2030.  Extending the net operating loss carried forward period to 20 years would have no fiscal impact until tax year 2029 or FY2030.  

Proponents:

Patrick Fucik, Sprint Corporation testified as a proponent for HB2490 stating the current Kansas law provides for a 10-year net operating loss, carryforward period.  HB2490 changes the Kansas net operating loss carryforward period from 10 years to 20 years.   The federal government enacted a tax reform in 2017 changing the 20 year carryforward period to unending.  He noted the majority of the states have a similar carryforward period stating 16 states have 20 years and 17 states have no limit on the carryforward period (Attachment 1).

Eric Stafford, Kansas Chamber submitted written testimony as a proponent for HB2490 (Attachment 2).

Hearing closed for HB2490.