The proposed bill, known as the Veterans' Valor Property Tax Relief Act, aims to provide an income tax credit or refund for eligible individuals who are deemed totally disabled, permanently and totally disabled, or unemployable according to federal regulations. For tax year 2025 and beyond, the bill allows a credit against the Kansas income tax liability equal to 50% of the property and ad valorem taxes paid on real or personal property used for residential purposes, which serves as the taxpayer's principal residence. This represents a decrease from the previous allowance of 75%.

Additionally, the bill stipulates that the credit cannot exceed the amount of property and ad valorem taxes paid, and taxpayers who have already received a homestead property tax refund or a credit for senior relief for the same property in the same tax year are ineligible for this credit. If the credit exceeds the taxpayer's income tax liability, the excess amount will be refunded. The Secretary of Revenue is tasked with establishing rules and regulations for the documentation required to support the credit claims, and the provisions of this act will supplement the existing homestead property tax refund act without applying its income or appraised valuation limits.