Kansas House Bill HB2276

Kansas 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/5/25

Caption

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

Summary

HB 2276 creates a new Kansas income tax credit for eligible small businesses that buy advertising from qualified local news organizations. The credit would apply to taxable years 2026 through 2029 and is designed to offset a portion of advertising costs: 50% in the first year a business claims the credit and 25% in later years, subject to annual caps of $5,000 initially and $2,500 thereafter. Unused credits could be carried forward for up to 10 years, but the credit would not be refundable. To claim the credit, a taxpayer must submit a certification from each local news organization that provided the advertising, confirming both the organization’s qualification and the purchase of qualifying advertising. The bill also defines key terms such as “eligible small business,” “local news organization,” and “qualified local news organization advertising,” with the latter including certain advertising and underwriting purchases from local broadcast stations or locally owned news products. The act would take effect upon publication in the statute book.

Impact

The bill would amend the Kansas income tax act by adding a targeted business tax credit tied to spending on local news advertising. It would create new eligibility rules, documentation requirements, and enforcement provisions, including civil penalties for knowingly false certifications. The measure would affect small businesses with fewer than 50 full-time employees, local newspapers, broadcasters, and other qualifying local news entities that can certify eligibility and receive advertising revenue.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears neutral to favorable toward supporting local journalism and helping small businesses advertise. The bill’s structure suggests a policy goal of channeling private advertising dollars toward local news outlets while providing a modest tax incentive to small employers. No recorded opposition, amendments, or roll-call votes are included in the available context.

Contention

The main points of potential contention are likely to be the use of the tax code to subsidize advertising purchases, the narrow definition of qualifying local news organizations, and the administrative burden of obtaining and filing certifications. Some may question whether the credit meaningfully supports journalism or simply shifts advertising spending that businesses would have made anyway. Others may focus on the limits of the benefit—its nonrefundable nature, caps, and sunset-like applicability only through 2029—as well as the possibility of false certifications and the associated penalties.