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 adjusted gross income. The bill details various categories of income and deductions, including interest income, taxes, federal net operating loss deductions, and charitable contributions. It also repeals the existing section of K.S.A. 2024 Supp. 79-32,117, indicating a significant update to the state's income tax law.

In addition to the eminent domain provisions, the bill outlines modifications to the treatment of various income sources and deductions for taxable years starting after December 31, 2012. It includes exclusions for certain income reported on Schedule E, tax benefits for contributions to family postsecondary education savings accounts and ABLE accounts, and allows taxpayers to apply contributions to these accounts to the previous taxable year if elected. The bill also addresses military bonuses, social security benefits, retirement benefits from specific university plans, and establishes guidelines for net gains from livestock sales, first-time home buyer savings accounts, and adoption savings accounts. It further provides for the carryback of federal net operating losses and expenses related to organ donation, and will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32