The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for individuals' Kansas adjusted gross income concerning property subject to eminent domain. This allows taxpayers to subtract specific amounts from their federal adjusted gross income when calculating their Kansas income tax. The bill also clarifies what can be added or subtracted from federal adjusted gross income, including interest income, taxes, federal net operating loss deductions, and charitable contributions. Additionally, it repeals the existing section of K.S.A. 2024 Supp. 79-32,117, indicating a comprehensive update to the law governing Kansas adjusted gross income.

Moreover, the bill outlines various tax modifications, including the exclusion of certain income or loss reported on Schedule E of federal tax returns for specific taxable years, and allows deductions for contributions to family postsecondary education savings accounts and ABLE accounts, with limits set at $3,000 for individuals and $6,000 for married couples filing jointly. It also includes provisions for armed forces members, exemptions for bonuses and educational loan repayments, and modifications related to social security benefits, retirement benefits from Washburn University, and net gains from livestock sales. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32