The bill amends K.S.A. 2025 Supp. 79-32,117 to modernize the Kansas income tax code by eliminating outdated references to global intangible low-taxed income as defined by federal law. It introduces changes to the calculation of Kansas adjusted gross income, including the addition of various income types and deductions. A significant change is the specification that the federal net operating loss deduction will not be included in an individual's federal adjusted gross income for tax years starting after December 31, 2016. The bill also outlines conditions for including or excluding certain contributions and deductions from Kansas adjusted gross income.

Additionally, the bill provides for the subtraction of specific income types from federal adjusted gross income, such as interest or dividend income on U.S. obligations and various retirement benefits. It establishes guidelines for handling federal credit disallowances and sets a timeline for filing claims for refunds or amended returns related to these disallowances. The bill also introduces provisions for contributions to family postsecondary education savings accounts and ABLE accounts, allowing deductions of up to $3,000 for individuals or $6,000 for married couples. Furthermore, it addresses income exclusions for armed forces members, social security benefits for low-income taxpayers, and retirement benefits for certain university and municipal employees, while repealing K.S.A. 2025 Supp. 79-32,117 and ensuring the modifications take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32