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Minutes for HB2553 - Committee on Taxation
Short Title
Providing income tax modifications for global intangible low-taxed income, business interest, capital contributions and FDIC premiums.
Minutes Content for Mon, Feb 17, 2020
Adam Siebers, Assistant Revisor provided an overview on HB2553 allowing a subtraction modification for 100.0 percent of global intangible low-taxed income (GILTI), before allowable deductions, to be subtracted from income for Kansas income tax purposes beginning retroactively to tax year 2018. The deductions from GILTI would be added back for Kansas income tax beginning retroactively to tax year 2018. The bill allows the amount of disallowed business interest expenses to be subtracted from income for Kansas income tax purposes beginning retroactively to tax year 2018. The bill allows taxpayers to deduct costs of any disallowed FDIC premiums beginning retroactively in tax year 2018.
Kathleen Smith, Department of Revenue estimates HB2553 would decrease the State General Fund revenues by $178.2 million in FY2021, $56.1 million in FY2022, and $62.3 million in FY2023. For the business interest deduction for FY 2021, $78.6 million; for GILTI allowable deductions for FY 2021, $95.6 million; and for FDIC premiums for FY 2021, $4. million.
In response to a question, Ms Smith noted the department received around 27,000 corporate returns this year. There have been 15,000 electronically filed returns. To date, the department has reviewed data and of the 15,000 returns there are 6.0% that are reporting GILTI dollars.
Proponents:
Scott Roberti and Brian Liesman, Ernst & Young testified as proponents for HB2553 (Attachment 3).
Eric Stafford, Kansas Chamber testified as a proponent for HB2553 (Attachment 4).
Don Brown, Cargill testified as a proponent for HB2553 (Attachment 5).
Written only testimony as a proponent to HB2553 was presented by:
Alex Orel, Kansas Bankers Association (Attachment 6).
Jared Walczak, Tax Foundation (Attachment 7).
Michele T. Wheeler, Nextera Energy, Inc. (Attachment 8).
Fred Nicely, Council of State Taxation (Attachment 9).
Jason Watkins, Wichita Regional Chamber of Commerce (Attachment 10).
Opponent:
Written only testimony as an opponent to HB2553 was presented by:
John Wilson, Kansas Action for Children (Attachment 11).
Hearing closed for HB2553
Next meeting scheduled is February 18, 2020.
