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HB 2276

Providing an income tax credit for an eligible small business that purchases qualified local news organization advertising.

2025-2026 Regular Session

Provides a temporary income tax credit (2026–2029) for eligible small Kansas businesses that purchase qualifying local news advertising.

Died in Committee
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Bill Summary · HB 2276

Summary — HB 2276 (Introduced January 30, 2025)

Title: Providing an income tax credit for an eligible small business that purchases qualified local news organization advertising.

Main purpose

To encourage small businesses to buy advertising from local news organizations by creating a temporary state income tax credit (tax years 2026–2029), with the twin goals of supporting local media revenue and incentivizing local advertising purchases.

Key provisions

  • Credit allowed for taxable years 2026 through 2029 against Kansas income tax for eligible small businesses that purchase “qualified local news organization advertising.”
  • Credit amount:
    • 50% of qualifying advertising expenditures in the taxpayer’s first year claiming the credit (subject to limits).
    • 25% of qualifying advertising expenditures in each subsequent taxable year.
  • Per-taxpayer caps:
    • $5,000 maximum credit in the first taxable year claimed.
    • $2,500 maximum credit in each subsequent taxable year.
  • Credits are nonrefundable but may be carried forward up to 10 taxable years.
  • Total statewide amount of credits is uncapped.
  • Taxpayers must submit, with their return, a certification signed by a representative of the local news organization verifying (a) that the news organization qualifies and (b) that the taxpayer purchased qualifying advertising.
  • Civil penalty of $5,000–$10,000 for entities that knowingly issue a false certification.

Definitions and eligibility

  • “Eligible small business”: an entity employing an average of fewer than 50 full‑time employees in Kansas during the taxable year.
  • “Local news organization”: creates, edits, produces and distributes original public‑interest reporting and meets membership requirements of the Kansas Press Association or Kansas Broadcasters Association.
  • “Qualified local news organization advertising”: payments for advertising in products fully owned/operated by a local news organization or advertising/underwriting on broadcast radio/TV stations licensed to serve a local community.

Fiscal and administrative impact (from Fiscal Note)

  • Department of Revenue estimates revenue reductions: approximately ($3.3 million) in FY2027 and ($2.3 million) in FY2028 under stated utilization assumptions.
  • Assumed potential credit generation: $9.8 million in tax year 2026 and $4.9 million in each of tax years 2027–2029 if 10% of eligible businesses participate.
  • Implementation/information technology and administration costs: $167,831 SGF in FY2026; ongoing $72,181 SGF in FY2027. One additional FTE to administer and respond to taxpayer inquiries.
  • Fiscal note assumes taxpayers will claim roughly one‑third of credit value up front and carry forward remaining portions over subsequent years.

Who is affected

  • Primary beneficiaries: Kansas small businesses (average <50 FT employees) that purchase qualifying local news advertising.
  • Secondary beneficiaries: qualifying local news organizations (potential increased ad revenue).
  • State budget: reduced State General Fund revenue and modest administrative costs to the Department of Revenue.

Timeline & procedural status

  • Applies to tax years 2026–2029.
  • Requires certification with tax return each year credit is claimed.
  • Status (as of provided materials): Hearing scheduled February 27, 2025 (House Committee on Taxation).

Compiled from official sources — confirm details with the bill’s official record.

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