Kansas Commerce Secretary Pat George released the following statement today in response to Gov. Sam Brownback signing into law SB 196, more commonly known as expensing legislation:
“The top priority for Governor Brownback is to expand the Kansas economy and create jobs, and this legislation provides a major piece necessary to accomplish that goal. The Brownback Administration wants to enact tax policies that maximize economic growth, and the guiding principle has always been that every business, every innovation and every entrepreneur matters. Expensing will result in uniform income tax treatment for capital investment in qualifying machinery and equipment by businesses of all types and sizes, which will encourage broad-based growth.”
Businesses that purchase equipment and software to support their growth will be allowed to immediately “expense” such purchases for tax purposes, rather than requiring a prescribed schedule of smaller deductions over multiple years. This will put an estimated $47 to $50 million back into the Kansas economy per year to be used for other purposes, such as job creation, wage increases and investments.