Clarifying modifications for certain business interest expenses and federal net operating loss carrybacks and providing a technical change to a statutory cross reference for recaptured moneys related to adoption savings accounts for purposes of Kansas income tax.

SB 268 clarifies Kansas tax rules for adoption savings accounts and modifies how certain business expenses affect taxable income. It updates recapture rules for adoption savings accounts, requiring taxpayers to return funds if withdrawn improperly within one year or used for non-qualified expenses. The bill also adjusts how federal net operating loss carrybacks are treated in Kansas income tax calculations. These changes directly affect Kansas taxpayers using adoption savings accounts and businesses claiming specific federal deductions. The bill amends Kansas statutes 38-2504 (adoption accounts) and 79-32,117 (adjusted gross income calculations).