The bill establishes a new section that defines essential terms related to independent contractors and introduces a framework for portable benefit plans. Key definitions include "bank," "hiring party," "independent contractor," "portable benefit plan," and "portable benefit plan provider." It allows hiring parties to contribute to portable benefit accounts for independent contractors, which can encompass various types of insurance and retirement benefits. Contributions can be sourced from the independent contractor's funds, the hiring party's funds, or a percentage of withheld compensation, without impacting the worker's employment classification.

In addition to the provisions for independent contractors, the bill amends the Kansas income tax code, focusing on tax credits and deductions for specific taxpayer categories. It introduces a federal credit disallowance for certain taxable years and allows a 50% deduction for the federal employee retention credit disallowance. Taxpayers must show prior filing and payment of Kansas income tax on the disallowed amount, with a claims deadline set for April 15, 2025. The bill also includes provisions for contributions to first-time home buyer and adoption savings accounts, while repealing K.S.A. 2025 Supp. 79-32,117, indicating a significant change in tax treatment. The act will take effect upon publication, aiming to provide tax relief and incentives for targeted groups.

Statutes affected:
As introduced: 79-32