This bill amends Kansas income tax law, focusing on Kansas adjusted gross income and modifications related to business interest expenses and federal net operating loss carrybacks. It clarifies the rules for adoption savings accounts, detailing the conditions for fund usage and withdrawal recapture, while introducing penalties for early withdrawals based on timing. Notably, it specifies that no penalties will apply if the account holder dies without a designated beneficiary. The bill also updates statutory references for recaptured funds related to adoption savings accounts and repeals existing sections of K.S.A. 2024 Supp. 38-2504 and 79-32,117, aiming to streamline the tax code and enhance clarity in income and deduction reporting.

Additionally, the bill proposes several modifications to the Kansas tax code, including provisions for excluding amounts received by retired employees of certain public entities and introducing new deductions for contributions to first-time home buyer and adoption savings accounts, with specified limits. It allows taxpayers to apply early-year contributions to the previous tax year if elected at filing. The bill establishes deadlines for claims for refunds or amended returns until April 15, 2025, for certain tax years, and is set to take effect upon publication in the statute book, ensuring prompt implementation of these changes.

Statutes affected:
As introduced: 38-2504, 79-32