Kansas Senate advances business tax break, despite school worries

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TOPEKA, Kan. (AP) -

A bill restoring a small business tax break has advanced in the Kansas Senate despite concerns that the money may be needed to fund public schools.

The Lawrence Journal-World reports that the measure received first-round approval Wednesday. It would allow individual tax filers who run their own businesses to deduct the costs incurred when placing certain tangible property and computer software into service. It was repealed as part of the 2012 tax overhaul that eliminated all taxes on income derived from those people's business operations. When lawmakers reversed that tax policy last year, the deduction wasn't restored.

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School funding uncertainty kept some senators from supporting it. The Revenue Department estimates the tax break would cost $21 million in the upcoming fiscal year, and about $10 million each year after that.

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