The bill amends Kansas tax law to clarify modifications related to Kansas adjusted gross income, particularly concerning business interest expenses and federal net operating loss carrybacks. It introduces a technical change to the statutory cross-reference regarding recaptured funds from adoption savings accounts, detailing permissible uses of these funds, conditions for recapture, and associated penalties. Notably, the bill specifies that penalties will not apply if the account holder dies without a designated beneficiary. Additionally, it amends K.S.A. 2024 Supp. 79-32,117 to include certain business interest expenses and contributions to adoption savings accounts in the federal adjusted gross income, with specific provisions for taxable years beginning after December 31, 2024.

Furthermore, the bill allows for deductions from federal adjusted gross income for contributions to first-time home buyer savings accounts and adoption savings accounts, with limits for individuals and married couples. It also extends the deadline for filing claims for refunds or amended returns related to federal net operating losses to April 15, 2025, for certain tax years. The bill repeals existing statutes K.S.A. 2024 Supp. 38-2504 and 79-32,117, indicating a significant restructuring of the tax code in these areas to provide clearer guidelines for taxpayers. The act will take effect upon publication in the statute book, ensuring prompt implementation of the new provisions.

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