The bill amends K.S.A. 2025 Supp. 79-32,117 to eliminate state income tax on certain qualified overtime compensation by introducing a subtraction modification that allows individuals to exclude specific overtime earnings from their taxable income. This change is part of a broader effort to refine the Kansas tax code, which includes various modifications to how income and deductions are treated for state tax purposes. The bill also repeals the existing section of K.S.A. 2025 Supp. 79-32,117, indicating a comprehensive update to the income tax regulations in Kansas.

In addition to the provisions regarding overtime compensation, the bill introduces several modifications related to the treatment of various income sources and deductions. It specifies exclusions for certain income reported on Schedule E for taxable years beginning after December 31, 2012, and allows deductions for contributions to family postsecondary education savings accounts and ABLE accounts, among others. The bill also addresses first-time home buyer savings accounts, adoption savings accounts, and the treatment of net operating losses under the CARES Act. Overall, the bill aims to provide tax relief and clarify the treatment of specific income and deductions for Kansas taxpayers, taking effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32