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Bill

HB 2642

Removing obsolete reference to global intangible low-taxed income provided for under the federal internal revenue code in determining Kansas adjusted gross income.

2025-2026 Regular Session

Kansas removes outdated federal GILTI tax reference from state income tax calculation rules to clarify tax code without substantive revenue impact.

Died in Senate Committee
#taxation
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WeVote Research Nonpartisan
Bill Summary · HB 2642

Legislative bill overview

HB 2642 removes an outdated reference to Global Intangible Low-Taxed Income (GILTI) from Kansas's tax code that is no longer applicable to how the state calculates adjusted gross income. GILTI is a federal tax provision designed to prevent corporations from shifting profits to low-tax jurisdictions, but Kansas's reference to it has become obsolete. The bill is a technical correction to align Kansas tax law with current federal law and eliminate confusion.

Why is this important

Obsolete tax code references can create confusion for taxpayers, accountants, and tax administrators, potentially leading to misinterpretation or incorrect filings. Cleaning up outdated provisions improves tax code clarity and reduces administrative burden. This is a routine legislative maintenance task that keeps state tax law current and functional.

Potential points of contention

  • Limited clarification needed: The bill summary doesn't explain why the GILTI reference became obsolete—whether federal law changed, Kansas's treatment changed, or there was never a valid application
  • Minimal revenue impact: While likely negligible, the fiscal impact isn't specified, and opponents might question whether removal could affect tax treatment of certain corporations
  • Procedural question: Whether this represents proper tax code maintenance or if the provision should have been addressed differently through other recent federal tax conformity bills

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

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