Kansas fully conforms to federal §168(k) via rolling IRC adoption — STR investors get 100% of the federal bonus deduction on the Kansas return with no add-back. Kansas begins with federal AGI and imposes no separate depreciation modification. Federal and state savings stack, delivering extra Year-1 tax relief for property acquired and placed in service after January 19, 2025. Compare Kansas's treatment to every other US jurisdiction in the complete state-by-state conformity map.
Modeled on a $150,000 federal §168(k) deduction. Run your own numbers in the Conformity Tool →
How Kansas adopts §168(k) — the rolling conformity mechanic
Kansas is a rolling-conformity state for individual income tax purposes. That means when Congress changes the Internal Revenue Code — as it did when the One Big Beautiful Bill Act (OBBBA, P.L. 119-21) restored 100% bonus depreciation permanently for property acquired and placed in service after January 19, 2025 — Kansas automatically adopts the new federal treatment without needing separate state legislation.
The controlling statute, K.S.A. §79-32,138, defines Kansas taxable income by reference to federal adjusted gross income (AGI) with a short list of statutory modifications. None of those modifications touches §168(k). Because the federal §168(k) deduction reduces AGI before it flows into Kansas, the deduction is baked into the starting point of the Kansas return — no add-back, no separate depreciation schedule.
Static-conformity states (like Kentucky or Virginia, whose IRC conformity is frozen at a specific date) required legislation to adopt OBBBA. Kansas didn't.
Worked example — $150,000 federal deduction plus extra Kansas savings
Consider a Kansas STR investor with a $150,000 Year-1 §168(k) deduction on a short-term rental acquired and placed in service after January 19, 2025. Assume the investor is in the 37% federal bracket and pays Kansas's 5.58% top marginal rate.
| Line | Amount | Notes |
|---|---|---|
| Federal §168(k) deduction | $150,000 | OBBBA 100% bonus |
| Federal Y1 tax savings @ 37% | $55,500 | Ordinary bracket |
| Kansas state deduction | $150,000 | Full conformity via federal AGI |
| Kansas Y1 state tax savings @ 5.58% | $8,370 | Top marginal rate |
| Total Year-1 combined savings | $63,870 | Federal + Kansas |
Because Kansas piggybacks on federal AGI, there are no basis differences to track and no separate depreciation schedule to maintain across the property's holding period.
The statute explained
The controlling Kansas authority is K.S.A. §79-32,138, which sets Kansas taxable income equal to federal AGI with statutory additions and subtractions. Because no addition or subtraction is specified for §168(k) bonus depreciation, the federal deduction reduces Kansas taxable income dollar-for-dollar.
How Kansas compares to decoupled states
The contrast with decoupled states is significant. In New York, an STR investor with the same $150,000 federal deduction adds back the entire amount on the state return — giving up roughly $16,350 in Year-1 state tax savings at New York's 10.9% top rate. California, Georgia, Pennsylvania, and about two dozen other jurisdictions impose similar 100% add-backs.
Kansas investors face none of that. The federal deduction flows through to Kansas AGI unchanged, and the extra $8,370 in state savings stacks on top of the federal $55,500. To compare Kansas against any decoupled state at any deduction amount, use the state conformity tool.
What this means for your STR purchase decision
Kansas's full conformity is a real underwriting advantage. When you're evaluating a Wichita, Kansas City suburb, or Lawrence-area STR purchase, you can price in both federal and state Year-1 tax savings at underwriting — not just the federal deduction. On a mid-sized property with $150,000 in bonus-eligible components, that's an extra $8,370 in first-year cash flow.
The qualifier: the property must be acquired and placed in service after January 19, 2025 to qualify for OBBBA's 100% federal bonus. Pre-January 19, 2025 acquisitions fall under the earlier phaseout schedule, and the Kansas deduction would follow whatever bonus percentage the federal return claims.
Before you make an offer, run the address on your property to see the calibrated Year-1 bonus-eligible dollar amount — DepreciMax reports classify every finish as 5-year, 15-year, or 39-year and quantify the federal plus Kansas state savings.
Analyze a specific Kansas property
Run any Kansas STR listing through DepreciMax's $99 property report — line-item finish classification with Kansas-specific state impact math.
Frequently asked questions
Do I get bonus depreciation on both my federal and Kansas return?
Yes. Kansas begins with federal AGI and has no state-level §168(k) modification under K.S.A. §79-32,138. STR investors claim the full federal 100% bonus deduction, and it flows through to the Kansas return with no add-back. For property acquired and placed in service after January 19, 2025, OBBBA's permanent 100% bonus applies at both the federal and Kansas levels.
What is Kansas's top individual income tax rate?
Kansas has a graduated individual income tax with a top marginal rate of 5.58% (2026). On a $150,000 federal §168(k) deduction, a Kansas STR investor picks up roughly $8,370 in additional Year-1 state tax savings on top of the federal deduction.
Does Kansas plan to change its §168(k) conformity in 2026?
No public legislation is pending to decouple Kansas from federal §168(k) for 2026. Because Kansas ties to federal AGI without a bonus depreciation modification, changes to §168(k) would require the legislature to add a new addition/subtraction modification — which has not been proposed.
What happens on sale — does Kansas recapture bonus depreciation?
Kansas follows federal basis and federal §1245 / §1250 recapture rules because the state allows the full federal §168(k) deduction. There is no separate Kansas recapture calculation for bonus depreciation; recapture flows through federal AGI to Kansas taxable income unchanged.
Does Kansas conformity apply to §179 as well?
Yes. Kansas conforms to federal §179 expensing at the federal cap without a separate state limit. STR investors can layer §179 (for qualifying tangible personal property) on top of §168(k) at both the federal and Kansas levels, subject to federal §179 income limits.
Every state's §168(k) position, in one place
Interactive map, sortable table, and deep-dive guide for each of the 51 jurisdictions — post-OBBBA verified.
See the 50-state map →