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 under 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 the taxpayer's principal residence, a change from the previous 75% allowance. The credit is limited to the amount of taxes paid and cannot be claimed if the taxpayer has already received a homestead property tax refund or a credit for senior relief for the same property in that tax year.

Additionally, if the tax 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. The provisions of this act will supplement the existing homestead property tax refund act, with the stipulation that the income or appraised valuation limits from that act will not apply to this new section. The act will take effect upon its publication in the statute book.