The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification that allows individuals to exclude compensation received for serving in the armed forces from their federal adjusted gross income when calculating their Kansas adjusted gross income. This change aims to reduce the taxable income for military personnel in Kansas. Additionally, the bill repeals the existing section of K.S.A. 79-32,117, indicating a comprehensive update to the state's income tax regulations. It also includes provisions for adjustments related to interest income, federal tax refunds, and specific deductions for business expenses and charitable contributions.

Further modifications in the bill address various income sources and deductions for taxable years beginning after December 31, 2012. Key provisions include the exclusion of certain income reported on Schedule E, deductions for contributions to family postsecondary education savings accounts and ABLE accounts, and the ability for taxpayers to apply current year contributions to the prior taxable year. Other notable changes involve the treatment of income for armed forces members, exclusions for certain social security benefits, and deductions for unreimbursed travel and medical expenses related to organ donation. The bill also establishes provisions for the carryback of federal net operating losses and the treatment of compensation for armed forces service members, with the new regulations taking effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32