The proposed bill would update current statutes by extending the authorized purposes for which public schools can use contributions from the Public School Extracurricular Activity Fees Tax Credit until June 30, 2029, and increasing the business personal property tax exemption to $500,000 effective January 1, 2026. It would also exempt the property of veterans with a 100% service-connected disability from the full amount of property tax, allowing their surviving spouses to maintain this exemption under certain conditions. Additionally, the bill would increase the individual income tax subtraction for unreimbursed adoption expenses from $3,000 to $5,000 for single filers and $10,000 for married couples, and expand the transaction privilege tax (TPT) deduction to include larger pipes used for wastewater transport.

Furthermore, the bill would remove the previous cap on property tax exemptions for veterans with service or nonservice-connected disabilities and eliminate the requirement for property to be valued below a certain assessment limit to qualify for the exemption. It would also exclude payments from any veterans pensions from the income calculation for the exemption. The maximum allowable exemption for personal property used for agricultural purposes or in trade or business would be updated from $207,366 to $500,000, and the income limits for tax exemptions would be revised to allow for increased deductions related to unreimbursed medical costs and adoption expenses, with specific amounts set for different filing statuses starting from taxable years after December 31, 2025.

Statutes affected:
Introduced Version: 42-11127, 43-1089.01, 42-12002, 42-12001
Senate Engrossed Version: 42-5061, 42-5159, 42-11111, 42-11127, 43-1022, 43-1089.01, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 42-11152, 32-1601, 42-12002, 42-12001, 43-1023, 15-1628, 15-1451, 43-1333, 43-1025, 43-1027, 43-1029, 43-1021, 111-5, 111-92, 41-1518, 43-1042, 20-1691, 101-336, 43-1024, 43-1028
Chaptered Version: 42-5061, 42-5159, 42-11111, 42-11127, 43-1022, 43-1089.01, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 42-11152, 32-1601, 42-12002, 42-12001, 43-1023, 15-1628, 15-1451, 43-1333, 43-1025, 43-1027, 43-1029, 43-1021, 111-5, 111-92, 41-1518, 43-1042, 20-1691, 101-336, 43-1024, 43-1028