The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for Kansas adjusted gross income concerning the sales or taking of property under eminent domain. This allows individuals to subtract specific amounts from their federal adjusted gross income when calculating their Kansas income tax. The bill details various categories of income and deductions that will be adjusted, including interest income, taxes, federal net operating loss deductions, and charitable contributions. It also includes provisions for taxable years beginning after December 31, 2021, addressing contributions to first-time home buyer savings accounts and adoption savings accounts, as well as deductions and credits related to health care and abortion coverage. The existing section of K.S.A. 2024 Supp. 79-32,117 is repealed, and new language is inserted to clarify these modifications.

Additionally, the bill outlines further tax modifications, particularly for taxable years between December 31, 2012, and January 1, 2017, where certain income or loss reported on Schedule E will be excluded from modifications. It allows deductions for contributions to family postsecondary education savings accounts and ABLE accounts, with limits of $3,000 for individuals and $6,000 for married couples filing jointly. The bill also addresses tax treatment for members of the armed forces, social security benefits, retirement benefits from Washburn University, and the sale of livestock and Christmas trees. It permits deductions for unreimbursed travel and medical expenses related to organ donation and includes provisions for taxpayers who carried back federal net operating losses due to the CARES Act. The act will take effect upon publication in the statute book.

Statutes affected:
As Introduced: 79-32
As introduced: 79-32