The bill amends K.S.A. 2024 Supp. 79-32,117 to introduce a subtraction modification for certain qualified tips, exempting them from state income tax. This adjustment allows individuals to subtract these qualified tips from their federal adjusted gross income, thereby modifying the Kansas adjusted gross income calculation. The bill also repeals the existing section of K.S.A. 79-32,117, indicating a comprehensive update to the income tax regulations, which aims to clarify tax implications and ensure favorable treatment of qualified tips under Kansas state tax law.

In addition to the changes regarding qualified tips, the bill includes various modifications to the Kansas tax code that affect the treatment of other income sources and deductions for taxable years beginning after December 31, 2012. It establishes limits on contributions to family postsecondary education savings accounts and ABLE accounts, allows taxpayers to exclude certain income reported on Schedule E of their federal tax return, and addresses military recruitment bonuses, social security benefits, and retirement benefits from specific university retirement plans. The bill also provides for the carryback of federal net operating losses and includes provisions for the treatment of net gains from the sale of livestock, contributions to first-time home buyer savings accounts, and adoption savings accounts, with specific limits on deductions. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32