Kansas 2023-2024 Regular Session

Kansas House Bill HB2064 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2023
2	2	HOUSE BILL No. 2064
3	3	By Committee on Commerce, Labor and Economic Development
4	4	1-18
5	5	AN ACT concerning economic development; relating to income and
6	6	privilege tax incentives for employee savings accounts; establishing the
7	7	Kansas employee emergency savings account (KEESA) program;
8	8	providing an income and privilege tax credit for certain eligible
9	9	employer deposits to employee savings accounts established under the
10	10	program; providing a subtraction modification for certain employee
11	11	deposits to savings accounts established under the program; amending
12	12	K.S.A. 2022 Supp. 79-32,117 and repealing the existing section.
13	13	Be it enacted by the Legislature of the State of Kansas:
14	14	New Section 1. (a) The purposes of this act shall be to provide
15	15	assistance to eligible employers with recruiting and retaining employees in
16	16	a challenging labor market through incentives to contribute to employee
17	17	emergency savings accounts, to encourage employees of eligible
18	18	employers to save money for emergencies to increase financial security
19	19	and avoid high-cost borrowing and to encourage financial literacy.
20	20	(b) There is hereby established the Kansas employee emergency
21	21	savings account (KEESA) program for taxable years 2024 through 2026.
22	22	Any eligible employer may participate in the Kansas employee emergency
23	23	savings account program provided in this section by submitting an
24	24	application to the secretary and complying with the requirements of this
25	25	section. The application shall be prepared in such form and manner as
26	26	required by the secretary and shall be submitted at a time to be determined
27	27	and specified by the secretary. The secretary shall review applications and
28	28	provide certifications of participation to each eligible employer who
29	29	complies with the requirements of this section.
30	30	(c) The program shall provide for participating eligible employers to
31	31	assist with the establishment of employee savings accounts that allow
32	32	automatic deposits by means of payroll deductions from employees'
33	33	paychecks and additional deposits by the employer. The program requires
34	34	the following:
35	35	(1) Employees of participating eligible employers may elect to
36	36	participate.
37	37	(2) The eligible employer shall make an initial deposit in an amount
38	38	of at least $50 on behalf of a participating employee to establish such a
39	39	savings account. The eligible employer may make additional deposits to
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76	76	employees' savings accounts based on matching funds or other amounts as
77	77	determined by the employer.
78	78	(3) Pursuant to a written authorization by a participating employee,
79	79	the eligible employer shall withhold or deduct any portion of such
80	80	employee's wages in the amount specified on the authorization form by a
81	81	payroll deduction to be deposited into such employee's savings account
82	82	established pursuant to this section and make deposits of such amounts to
83	83	such employee's savings account. Any such written authorization may be
84	84	withdrawn or modified by such employee upon providing written notice of
85	85	withdrawal or modification to the eligible employer. No administrative
86	86	fees or charges shall be assessed for costs incurred in making such
87	87	deductions.
88	88	(4) The employee savings accounts shall be federally insured savings
89	89	accounts established and maintained at a federally insured bank, savings
90	90	bank, savings and loan association or credit union. The savings accounts
91	91	shall offer online and mobile banking access.
92	92	(5) The owner or account holder of such savings account shall be the
93	93	employee for whom the savings account was established. The eligible
94	94	employer shall not attempt to restrict the use of any moneys in employees'
95	95	savings accounts established pursuant to this section.
96	96	(6) The eligible employer shall offer a mobile application that notifies
97	97	employees of payroll deposits and provides financial literacy tools and
98	98	educational materials to learn about saving for emergencies, establishing
99	99	savings goals and budgeting.
100	100	(7) On or before January 31 each year, the eligible employer shall
101	101	provide to each participating employee notice of such employee's total
102	102	deposits by means of payroll deductions made to such employee's savings
103	103	account during the prior taxable year.
104	104	(d) Each participating eligible employer shall annually report to the
105	105	secretary the following:
106	106	(1) The number of employee savings accounts newly established
107	107	during the preceding year;
108	108	(2) the amounts of initial deposits made by the employer during the
109	109	preceding year;
110	110	(3) the number of participating employees during the preceding year;
111	111	(4) the amounts of deposits by employees by means of payroll
112	112	deduction during the preceding year;
113	113	(5) the amounts of additional deposits made by the employer during
114	114	the preceding year; and
115	115	(6) any additional information as the secretary may require pursuant
116	116	to this section.
117	117	(e) As used in this section:
118	118	(1) "Eligible employer" means any person, firm, corporation,
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162	162	partnership or association that is subject to income tax pursuant to the
163	163	Kansas income tax act or privilege tax pursuant to article 11 of chapter 79
164	164	of the Kansas Statutes Annotated, and amendments thereto, and that
165	165	employs not more than 250 employees;
166	166	(2) "program" means the Kansas employee emergency savings
167	167	account program provided in this section; and
168	168	(3) "secretary" means the secretary of commerce.
169	169	(f) The secretary of commerce may adopt rules and regulations
170	170	necessary to administer the provisions of this section.
171	171	New Sec. 2. (a) For taxable years 2024 through 2026, there shall be
172	172	allowed a credit against the tax liability of a taxpayer imposed under the
173	173	Kansas income tax act or the privilege tax liability of a taxpayer imposed
174	174	upon a national banking association, state bank, trust company or savings
175	175	and loan association pursuant article 11 of chapter 79 of the Kansas
176	176	Statutes Annotated, and amendments thereto, in an amount equal to the
177	177	sum of:
178	178	(1) 50% of initial deposits made during the taxable year by a taxpayer
179	179	to employees' savings accounts established under the Kansas employee
180	180	emergency savings account program pursuant to section 1, and
181	181	amendments thereto; and
182	182	(2) 25% of additional deposits by matching funds or other amounts
183	183	deposited as determined by the employer during the taxable year by a
184	184	taxpayer to employees' savings accounts established under the Kansas
185	185	employee emergency savings account program pursuant to section 1, and
186	186	amendments thereto.
187	187	(b) For purposes of this section, the taxpayer shall be an eligible
188	188	employer participating in the Kansas employee emergency savings account
189	189	program pursuant to section 1, and amendments thereto. Amounts withheld
190	190	or deducted by means of payroll deduction from employees' wages shall
191	191	not be included as deposits of a taxpayer for purposes of this credit.
192	192	(c) The amount of credit allowed each taxable year pursuant to
193	193	subsection (a)(1) shall not exceed $50 per employee savings account
194	194	established during such taxable year. The amount of credit allowed each
195	195	taxable year pursuant to subsection (a)(2) shall not exceed $325 per
196	196	employee participating in the program during such taxable year.
197	197	(d) If the total amount of such tax credit exceeds the taxpayer's
198	198	income or privilege tax liability for such taxable year, such excess amount
199	199	may be carried forward for deduction from the taxpayer's income or
200	200	privilege tax liability in the next succeeding year or years for up to two
201	201	taxable years immediately following the taxable year for which the credits
202	202	were allowed. The credit shall not be refundable. The credit shall not be
203	203	transferable.
204	204	(e) The taxpayer shall provide to the secretary of revenue any
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248	248	information as may be required by the secretary to administer the
249	249	provisions of this section.
250	250	(f) The provisions of this section shall be a part of and supplemental
251	251	to the Kansas income tax act.
252	252	Sec. 3. K.S.A. 2022 Supp. 79-32,117 is hereby amended to read as
253	253	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
254	254	means such individual's federal adjusted gross income for the taxable year,
255	255	with the modifications specified in this section.
256	256	(b) There shall be added to federal adjusted gross income:
257	257	(i) Interest income less any related expenses directly incurred in the
258	258	purchase of state or political subdivision obligations, to the extent that the
259	259	same is not included in federal adjusted gross income, on obligations of
260	260	any state or political subdivision thereof, but to the extent that interest
261	261	income on obligations of this state or a political subdivision thereof issued
262	262	prior to January 1, 1988, is specifically exempt from income tax under the
263	263	laws of this state authorizing the issuance of such obligations, it shall be
264	264	excluded from computation of Kansas adjusted gross income whether or
265	265	not included in federal adjusted gross income. Interest income on
266	266	obligations of this state or a political subdivision thereof issued after
267	267	December 31, 1987, shall be excluded from computation of Kansas
268	268	adjusted gross income whether or not included in federal adjusted gross
269	269	income.
270	270	(ii) Taxes on or measured by income or fees or payments in lieu of
271	271	income taxes imposed by this state or any other taxing jurisdiction to the
272	272	extent deductible in determining federal adjusted gross income and not
273	273	credited against federal income tax. This paragraph shall not apply to taxes
274	274	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
275	275	amendments thereto, for privilege tax year 1995, and all such years
276	276	thereafter.
277	277	(iii) The federal net operating loss deduction, except that the federal
278	278	net operating loss deduction shall not be added to an individual's federal
279	279	adjusted gross income for tax years beginning after December 31, 2016.
280	280	(iv) Federal income tax refunds received by the taxpayer if the
281	281	deduction of the taxes being refunded resulted in a tax benefit for Kansas
282	282	income tax purposes during a prior taxable year. Such refunds shall be
283	283	included in income in the year actually received regardless of the method
284	284	of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
285	285	be deemed to have resulted if the amount of the tax had been deducted in
286	286	determining income subject to a Kansas income tax for a prior year
287	287	regardless of the rate of taxation applied in such prior year to the Kansas
288	288	taxable income, but only that portion of the refund shall be included as
289	289	bears the same proportion to the total refund received as the federal taxes
290	290	deducted in the year to which such refund is attributable bears to the total
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334	334	federal income taxes paid for such year. For purposes of the foregoing
335	335	sentence, federal taxes shall be considered to have been deducted only to
336	336	the extent such deduction does not reduce Kansas taxable income below
337	337	zero.
338	338	(v) The amount of any depreciation deduction or business expense
339	339	deduction claimed on the taxpayer's federal income tax return for any
340	340	capital expenditure in making any building or facility accessible to the
341	341	handicapped, for which expenditure the taxpayer claimed the credit
342	342	allowed by K.S.A. 79-32,177, and amendments thereto.
343	343	(vi) Any amount of designated employee contributions picked up by
344	344	an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
345	345	and amendments thereto.
346	346	(vii) The amount of any charitable contribution made to the extent the
347	347	same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
348	348	32,196, and amendments thereto.
349	349	(viii) The amount of any costs incurred for improvements to a swine
350	350	facility, claimed for deduction in determining federal adjusted gross
351	351	income, to the extent the same is claimed as the basis for any credit
352	352	allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
353	353	(ix) The amount of any ad valorem taxes and assessments paid and
354	354	the amount of any costs incurred for habitat management or construction
355	355	and maintenance of improvements on real property, claimed for deduction
356	356	in determining federal adjusted gross income, to the extent the same is
357	357	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
358	358	and amendments thereto.
359	359	(x) Amounts received as nonqualified withdrawals, as defined by
360	360	K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
361	361	family postsecondary education savings account, such amounts were
362	362	subtracted from the federal adjusted gross income pursuant to K.S.A. 79-
363	363	32,117(c)(xv), and amendments thereto, or if such amounts are not already
364	364	included in the federal adjusted gross income.
365	365	(xi) The amount of any contribution made to the same extent the
366	366	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
367	367	50,154, and amendments thereto.
368	368	(xii) For taxable years commencing after December 31, 2004,
369	369	amounts received as withdrawals not in accordance with the provisions of
370	370	K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
371	371	to an individual development account, such amounts were subtracted from
372	372	the federal adjusted gross income pursuant to subsection (c)(xiii), or if
373	373	such amounts are not already included in the federal adjusted gross
374	374	income.
375	375	(xiii) The amount of any expenditures claimed for deduction in
376	376	determining federal adjusted gross income, to the extent the same is
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420	420	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
421	421	through 79-32,220 or 79-32,222, and amendments thereto.
422	422	(xiv) The amount of any amortization deduction claimed in
423	423	determining federal adjusted gross income to the extent the same is
424	424	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
425	425	thereto.
426	426	(xv) The amount of any expenditures claimed for deduction in
427	427	determining federal adjusted gross income, to the extent the same is
428	428	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
429	429	through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
430	430	32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
431	431	32,251 through 79-32,254, and amendments thereto.
432	432	(xvi) The amount of any amortization deduction claimed in
433	433	determining federal adjusted gross income to the extent the same is
434	434	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
435	435	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
436	436	(xvii) The amount of any amortization deduction claimed in
437	437	determining federal adjusted gross income to the extent the same is
438	438	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
439	439	thereto.
440	440	(xviii) For taxable years commencing after December 31, 2006, the
441	441	amount of any ad valorem or property taxes and assessments paid to a state
442	442	other than Kansas or local government located in a state other than Kansas
443	443	by a taxpayer who resides in a state other than Kansas, when the law of
444	444	such state does not allow a resident of Kansas who earns income in such
445	445	other state to claim a deduction for ad valorem or property taxes or
446	446	assessments paid to a political subdivision of the state of Kansas in
447	447	determining taxable income for income tax purposes in such other state, to
448	448	the extent that such taxes and assessments are claimed as an itemized
449	449	deduction for federal income tax purposes.
450	450	(xix) For taxable years beginning after December 31, 2012, and
451	451	ending before January 1, 2017, the amount of any: (1) Loss from business
452	452	as determined under the federal internal revenue code and reported from
453	453	schedule C and on line 12 of the taxpayer's form 1040 federal individual
454	454	income tax return; (2) loss from rental real estate, royalties, partnerships, S
455	455	corporations, except those with wholly owned subsidiaries subject to the
456	456	Kansas privilege tax, estates, trusts, residual interest in real estate
457	457	mortgage investment conduits and net farm rental as determined under the
458	458	federal internal revenue code and reported from schedule E and on line 17
459	459	of the taxpayer's form 1040 federal individual income tax return; and (3)
460	460	farm loss as determined under the federal internal revenue code and
461	461	reported from schedule F and on line 18 of the taxpayer's form 1040
462	462	federal income tax return; all to the extent deducted or subtracted in
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506	506	determining the taxpayer's federal adjusted gross income. For purposes of
507	507	this subsection, references to the federal form 1040 and federal schedule
508	508	C, schedule E, and schedule F, shall be to such form and schedules as they
509	509	existed for tax year 2011, and as revised thereafter by the internal revenue
510	510	service.
511	511	(xx) For taxable years beginning after December 31, 2012, and
512	512	ending before January 1, 2017, the amount of any deduction for self-
513	513	employment taxes under section 164(f) of the federal internal revenue
514	514	code as in effect on January 1, 2012, and amendments thereto, in
515	515	determining the federal adjusted gross income of an individual taxpayer, to
516	516	the extent the deduction is attributable to income reported on schedule C,
517	517	E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
518	518	tax return.
519	519	(xxi) For taxable years beginning after December 31, 2012, and
520	520	ending before January 1, 2017, the amount of any deduction for pension,
521	521	profit sharing, and annuity plans of self-employed individuals under
522	522	section 62(a)(6) of the federal internal revenue code as in effect on January
523	523	1, 2012, and amendments thereto, in determining the federal adjusted gross
524	524	income of an individual taxpayer.
525	525	(xxii) For taxable years beginning after December 31, 2012, and
526	526	ending before January 1, 2017, the amount of any deduction for health
527	527	insurance under section 162(l) of the federal internal revenue code as in
528	528	effect on January 1, 2012, and amendments thereto, in determining the
529	529	federal adjusted gross income of an individual taxpayer.
530	530	(xxiii) For taxable years beginning after December 31, 2012, and
531	531	ending before January 1, 2017, the amount of any deduction for domestic
532	532	production activities under section 199 of the federal internal revenue code
533	533	as in effect on January 1, 2012, and amendments thereto, in determining
534	534	the federal adjusted gross income of an individual taxpayer.
535	535	(xxiv) For taxable years commencing after December 31, 2013, that
536	536	portion of the amount of any expenditure deduction claimed in
537	537	determining federal adjusted gross income for expenses paid for medical
538	538	care of the taxpayer or the taxpayer's spouse or dependents when such
539	539	expenses were paid or incurred for an abortion, or for a health benefit plan,
540	540	as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
541	541	an optional rider for coverage of abortion in accordance with K.S.A. 40-
542	542	2,190, and amendments thereto, to the extent that such taxes and
543	543	assessments are claimed as an itemized deduction for federal income tax
544	544	purposes.
545	545	(xxv) For taxable years commencing after December 31, 2013, that
546	546	portion of the amount of any expenditure deduction claimed in
547	547	determining federal adjusted gross income for expenses paid by a taxpayer
548	548	for health care when such expenses were paid or incurred for abortion
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592	592	coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
593	593	amendments thereto, when such expenses were paid or incurred for
594	594	abortion coverage or amounts contributed to health savings accounts for
595	595	such taxpayer's employees for the purchase of an optional rider for
596	596	coverage of abortion in accordance with K.S.A. 40-2,190, and
597	597	amendments thereto, to the extent that such taxes and assessments are
598	598	claimed as a deduction for federal income tax purposes.
599	599	(xxvi) For all taxable years beginning after December 31, 2016, the
600	600	amount of any charitable contribution made to the extent the same is
601	601	claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
602	602	amendments thereto, and is also claimed as an itemized deduction for
603	603	federal income tax purposes.
604	604	(xxvii) For all taxable years commencing after December 31, 2020,
605	605	the amount deducted by reason of a carryforward of disallowed business
606	606	interest pursuant to section 163(j) of the federal internal revenue code of
607	607	1986, as in effect on January 1, 2018.
608	608	(xxviii) For all taxable years beginning after December 31, 2021, the
609	609	amount of any contributions to, or earnings from, a first-time home buyer
610	610	savings account if distributions from the account were not used to pay for
611	611	expenses or transactions authorized pursuant to K.S.A. 2022 Supp. 58-
612	612	4904, and amendments thereto, or were not held for the minimum length
613	613	of time required pursuant to K.S.A. 2022 Supp. 58-4904, and amendments
614	614	thereto. Contributions to, or earnings from, such account shall also include
615	615	any amount resulting from the account holder not designating a surviving
616	616	transfer on death beneficiary pursuant to K.S.A. 2022 Supp. 58-4904(e),
617	617	and amendments thereto.
618	618	(c) There shall be subtracted from federal adjusted gross income:
619	619	(i) Interest or dividend income on obligations or securities of any
620	620	authority, commission or instrumentality of the United States and its
621	621	possessions less any related expenses directly incurred in the purchase of
622	622	such obligations or securities, to the extent included in federal adjusted
623	623	gross income but exempt from state income taxes under the laws of the
624	624	United States.
625	625	(ii) Any amounts received which are included in federal adjusted
626	626	gross income but which are specifically exempt from Kansas income
627	627	taxation under the laws of the state of Kansas.
628	628	(iii) The portion of any gain or loss from the sale or other disposition
629	629	of property having a higher adjusted basis for Kansas income tax purposes
630	630	than for federal income tax purposes on the date such property was sold or
631	631	disposed of in a transaction in which gain or loss was recognized for
632	632	purposes of federal income tax that does not exceed such difference in
633	633	basis, but if a gain is considered a long-term capital gain for federal
634	634	income tax purposes, the modification shall be limited to that portion of
635	635	1
636	636	2
637	637	3
638	638	4
639	639	5
640	640	6
641	641	7
642	642	8
643	643	9
644	644	10
645	645	11
646	646	12
647	647	13
648	648	14
649	649	15
650	650	16
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654	654	20
655	655	21
656	656	22
657	657	23
658	658	24
659	659	25
660	660	26
661	661	27
662	662	28
663	663	29
664	664	30
665	665	31
666	666	32
667	667	33
668	668	34
669	669	35
670	670	36
671	671	37
672	672	38
673	673	39
674	674	40
675	675	41
676	676	42
677	677	43 HB 2064 9
678	678	such gain which is included in federal adjusted gross income.
679	679	(iv) The amount necessary to prevent the taxation under this act of
680	680	any annuity or other amount of income or gain which was properly
681	681	included in income or gain and was taxed under the laws of this state for a
682	682	taxable year prior to the effective date of this act, as amended, to the
683	683	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
684	684	the right to receive the income or gain, or to a trust or estate from which
685	685	the taxpayer received the income or gain.
686	686	(v) The amount of any refund or credit for overpayment of taxes on
687	687	or measured by income or fees or payments in lieu of income taxes
688	688	imposed by this state, or any taxing jurisdiction, to the extent included in
689	689	gross income for federal income tax purposes.
690	690	(vi) Accumulation distributions received by a taxpayer as a
691	691	beneficiary of a trust to the extent that the same are included in federal
692	692	adjusted gross income.
693	693	(vii) Amounts received as annuities under the federal civil service
694	694	retirement system from the civil service retirement and disability fund and
695	695	other amounts received as retirement benefits in whatever form which
696	696	were earned for being employed by the federal government or for service
697	697	in the armed forces of the United States.
698	698	(viii) Amounts received by retired railroad employees as a
699	699	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
700	700	228c(a)(1) et seq.
701	701	(ix) Amounts received by retired employees of a city and by retired
702	702	employees of any board of such city as retirement allowances pursuant to
703	703	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
704	704	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
705	705	amendments thereto.
706	706	(x) For taxable years beginning after December 31, 1976, the amount
707	707	of the federal tentative jobs tax credit disallowance under the provisions of
708	708	26 U.S.C. § 280C. For taxable years ending after December 31, 1978, the
709	709	amount of the targeted jobs tax credit and work incentive credit
710	710	disallowances under 26 U.S.C. § 280C.
711	711	(xi) For taxable years beginning after December 31, 1986, dividend
712	712	income on stock issued by Kansas venture capital, inc.
713	713	(xii) For taxable years beginning after December 31, 1989, amounts
714	714	received by retired employees of a board of public utilities as pension and
715	715	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
716	716	and amendments thereto.
717	717	(xiii) For taxable years beginning after December 31, 2004, amounts
718	718	contributed to and the amount of income earned on contributions deposited
719	719	to an individual development account under K.S.A. 74-50,201 et seq., and
720	720	amendments thereto.
721	721	1
722	722	2
723	723	3
724	724	4
725	725	5
726	726	6
727	727	7
728	728	8
729	729	9
730	730	10
731	731	11
732	732	12
733	733	13
734	734	14
735	735	15
736	736	16
737	737	17
738	738	18
739	739	19
740	740	20
741	741	21
742	742	22
743	743	23
744	744	24
745	745	25
746	746	26
747	747	27
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749	749	29
750	750	30
751	751	31
752	752	32
753	753	33
754	754	34
755	755	35
756	756	36
757	757	37
758	758	38
759	759	39
760	760	40
761	761	41
762	762	42
763	763	43 HB 2064 10
764	764	(xiv) For all taxable years commencing after December 31, 1996, that
765	765	portion of any income of a bank organized under the laws of this state or
766	766	any other state, a national banking association organized under the laws of
767	767	the United States, an association organized under the savings and loan
768	768	code of this state or any other state, or a federal savings association
769	769	organized under the laws of the United States, for which an election as an
770	770	S corporation under subchapter S of the federal internal revenue code is in
771	771	effect, which accrues to the taxpayer who is a stockholder of such
772	772	corporation and which is not distributed to the stockholders as dividends of
773	773	the corporation. For taxable years beginning after December 31, 2012, and
774	774	ending before January 1, 2017, the amount of modification under this
775	775	subsection shall exclude the portion of income or loss reported on schedule
776	776	E and included on line 17 of the taxpayer's form 1040 federal individual
777	777	income tax return.
778	778	(xv) For all taxable years beginning after December 31, 2017, the
779	779	cumulative amounts not exceeding $3,000, or $6,000 for a married couple
780	780	filing a joint return, for each designated beneficiary that are contributed to:
781	781	(1) A family postsecondary education savings account established under
782	782	the Kansas postsecondary education savings program or a qualified tuition
783	783	program established and maintained by another state or agency or
784	784	instrumentality thereof pursuant to section 529 of the internal revenue
785	785	code of 1986, as amended, for the purpose of paying the qualified higher
786	786	education expenses of a designated beneficiary; or (2) an achieving a
787	787	better life experience (ABLE) account established under the Kansas ABLE
788	788	savings program or a qualified ABLE program established and maintained
789	789	by another state or agency or instrumentality thereof pursuant to section
790	790	529A of the internal revenue code of 1986, as amended, for the purpose of
791	791	saving private funds to support an individual with a disability. The terms
792	792	and phrases used in this paragraph shall have the meaning respectively
793	793	ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
794	794	amendments thereto, and the provisions of such sections are hereby
795	795	incorporated by reference for all purposes thereof.
796	796	(xvi) For all taxable years beginning after December 31, 2004,
797	797	amounts received by taxpayers who are or were members of the armed
798	798	forces of the United States, including service in the Kansas army and air
799	799	national guard, as a recruitment, sign up or retention bonus received by
800	800	such taxpayer as an incentive to join, enlist or remain in the armed services
801	801	of the United States, including service in the Kansas army and air national
802	802	guard, and amounts received for repayment of educational or student loans
803	803	incurred by or obligated to such taxpayer and received by such taxpayer as
804	804	a result of such taxpayer's service in the armed forces of the United States,
805	805	including service in the Kansas army and air national guard.
806	806	(xvii) For all taxable years beginning after December 31, 2004,
807	807	1
808	808	2
809	809	3
810	810	4
811	811	5
812	812	6
813	813	7
814	814	8
815	815	9
816	816	10
817	817	11
818	818	12
819	819	13
820	820	14
821	821	15
822	822	16
823	823	17
824	824	18
825	825	19
826	826	20
827	827	21
828	828	22
829	829	23
830	830	24
831	831	25
832	832	26
833	833	27
834	834	28
835	835	29
836	836	30
837	837	31
838	838	32
839	839	33
840	840	34
841	841	35
842	842	36
843	843	37
844	844	38
845	845	39
846	846	40
847	847	41
848	848	42
849	849	43 HB 2064 11
850	850	amounts received by taxpayers who are eligible members of the Kansas
851	851	army and air national guard as a reimbursement pursuant to K.S.A. 48-
852	852	281, and amendments thereto, and amounts received for death benefits
853	853	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
854	854	such death benefits are included in federal adjusted gross income of the
855	855	taxpayer.
856	856	(xviii) For the taxable year beginning after December 31, 2006,
857	857	amounts received as benefits under the federal social security act which
858	858	are included in federal adjusted gross income of a taxpayer with federal
859	859	adjusted gross income of $50,000 or less, whether such taxpayer's filing
860	860	status is single, head of household, married filing separate or married filing
861	861	jointly; and for all taxable years beginning after December 31, 2007,
862	862	amounts received as benefits under the federal social security act which
863	863	are included in federal adjusted gross income of a taxpayer with federal
864	864	adjusted gross income of $75,000 or less, whether such taxpayer's filing
865	865	status is single, head of household, married filing separate or married filing
866	866	jointly.
867	867	(xix) Amounts received by retired employees of Washburn university
868	868	as retirement and pension benefits under the university's retirement plan.
869	869	(xx) For taxable years beginning after December 31, 2012, and
870	870	ending before January 1, 2017, the amount of any: (1) Net profit from
871	871	business as determined under the federal internal revenue code and
872	872	reported from schedule C and on line 12 of the taxpayer's form 1040
873	873	federal individual income tax return; (2) net income, not including
874	874	guaranteed payments as defined in section 707(c) of the federal internal
875	875	revenue code and as reported to the taxpayer from federal schedule K-1,
876	876	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
877	877	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
878	878	partnerships, S corporations, estates, trusts, residual interest in real estate
879	879	mortgage investment conduits and net farm rental as determined under the
880	880	federal internal revenue code and reported from schedule E and on line 17
881	881	of the taxpayer's form 1040 federal individual income tax return; and (3)
882	882	net farm profit as determined under the federal internal revenue code and
883	883	reported from schedule F and on line 18 of the taxpayer's form 1040
884	884	federal income tax return; all to the extent included in the taxpayer's
885	885	federal adjusted gross income. For purposes of this subsection, references
886	886	to the federal form 1040 and federal schedule C, schedule E, and schedule
887	887	F, shall be to such form and schedules as they existed for tax year 2011
888	888	and as revised thereafter by the internal revenue service.
889	889	(xxi) For all taxable years beginning after December 31, 2013,
890	890	amounts equal to the unreimbursed travel, lodging and medical
891	891	expenditures directly incurred by a taxpayer while living, or a dependent
892	892	of the taxpayer while living, for the donation of one or more human organs
893	893	1
894	894	2
895	895	3
896	896	4
897	897	5
898	898	6
899	899	7
900	900	8
901	901	9
902	902	10
903	903	11
904	904	12
905	905	13
906	906	14
907	907	15
908	908	16
909	909	17
910	910	18
911	911	19
912	912	20
913	913	21
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917	917	25
918	918	26
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922	922	30
923	923	31
924	924	32
925	925	33
926	926	34
927	927	35
928	928	36
929	929	37
930	930	38
931	931	39
932	932	40
933	933	41
934	934	42
935	935	43 HB 2064 12
936	936	of the taxpayer, or a dependent of the taxpayer, to another person for
937	937	human organ transplantation. The expenses may be claimed as a
938	938	subtraction modification provided for in this section to the extent the
939	939	expenses are not already subtracted from the taxpayer's federal adjusted
940	940	gross income. In no circumstances shall the subtraction modification
941	941	provided for in this section for any individual, or a dependent, exceed
942	942	$5,000. As used in this section, "human organ" means all or part of a liver,
943	943	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
944	944	paragraph shall take effect on the day the secretary of revenue certifies to
945	945	the director of the budget that the cost for the department of revenue of
946	946	modifications to the automated tax system for the purpose of
947	947	implementing this paragraph will not exceed $20,000.
948	948	(xxii) For taxable years beginning after December 31, 2012, and
949	949	ending before January 1, 2017, the amount of net gain from the sale of: (1)
950	950	Cattle and horses, regardless of age, held by the taxpayer for draft,
951	951	breeding, dairy or sporting purposes, and held by such taxpayer for 24
952	952	months or more from the date of acquisition; and (2) other livestock,
953	953	regardless of age, held by the taxpayer for draft, breeding, dairy or
954	954	sporting purposes, and held by such taxpayer for 12 months or more from
955	955	the date of acquisition. The subtraction from federal adjusted gross income
956	956	shall be limited to the amount of the additions recognized under the
957	957	provisions of subsection (b)(xix) attributable to the business in which the
958	958	livestock sold had been used. As used in this paragraph, the term
959	959	"livestock" shall not include poultry.
960	960	(xxiii) For all taxable years beginning after December 31, 2012,
961	961	amounts received under either the Overland Park, Kansas police
962	962	department retirement plan or the Overland Park, Kansas fire department
963	963	retirement plan, both as established by the city of Overland Park, pursuant
964	964	to the city's home rule authority.
965	965	(xxiv) For taxable years beginning after December 31, 2013, and
966	966	ending before January 1, 2017, the net gain from the sale from Christmas
967	967	trees grown in Kansas and held by the taxpayer for six years or more.
968	968	(xxv) For all taxable years commencing after December 31, 2020,
969	969	100% of global intangible low-taxed income under section 951A of the
970	970	federal internal revenue code of 1986, before any deductions allowed
971	971	under section 250(a)(1)(B) of such code.
972	972	(xxvi) For all taxable years commencing after December 31, 2020,
973	973	the amount disallowed as a deduction pursuant to section 163(j) of the
974	974	federal internal revenue code of 1986, as in effect on January 1, 2018.
975	975	(xxvii) For taxable years commencing after December 31, 2020, the
976	976	amount disallowed as a deduction pursuant to section 274 of the federal
977	977	internal revenue code of 1986 for meal expenditures shall be allowed to
978	978	the extent such expense was deductible for determining federal income tax
979	979	1
980	980	2
981	981	3
982	982	4
983	983	5
984	984	6
985	985	7
986	986	8
987	987	9
988	988	10
989	989	11
990	990	12
991	991	13
992	992	14
993	993	15
994	994	16
995	995	17
996	996	18
997	997	19
998	998	20
999	999	21
1000	1000	22
1001	1001	23
1002	1002	24
1003	1003	25
1004	1004	26
1005	1005	27
1006	1006	28
1007	1007	29
1008	1008	30
1009	1009	31
1010	1010	32
1011	1011	33
1012	1012	34
1013	1013	35
1014	1014	36
1015	1015	37
1016	1016	38
1017	1017	39
1018	1018	40
1019	1019	41
1020	1020	42
1021	1021	43 HB 2064 13
1022	1022	and was allowed and in effect on December 31, 2017.
1023	1023	(xxviii) For all taxable years beginning after December 31, 2021: (1)
1024	1024	The amount contributed to a first-time home buyer savings account
1025	1025	pursuant to K.S.A. 2022 Supp. 58-4903, and amendments thereto, in an
1026	1026	amount not to exceed $3,000 for an individual or $6,000 for a married
1027	1027	couple filing a joint return; or (2) amounts received as income earned from
1028	1028	assets in a first-time home buyer savings account.
1029	1029	(xxix) For taxable years 2024 through 2026, the cumulative amounts
1030	1030	not exceeding $1,500, or $3,000 for a married couple filing a joint return,
1031	1031	deposited by a taxpayer during the taxable year by means of payroll
1032	1032	deduction from such taxpayer's wages to such taxpayer's employee savings
1033	1033	account established under the Kansas employee emergency savings
1034	1034	account program pursuant to section 1, and amendments thereto.
1035	1035	(d) There shall be added to or subtracted from federal adjusted gross
1036	1036	income the taxpayer's share, as beneficiary of an estate or trust, of the
1037	1037	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
1038	1038	amendments thereto.
1039	1039	(e) The amount of modifications required to be made under this
1040	1040	section by a partner which relates to items of income, gain, loss, deduction
1041	1041	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
1042	1042	amendments thereto, to the extent that such items affect federal adjusted
1043	1043	gross income of the partner.
1044	1044	(f) No taxpayer shall be assessed penalties and interest from the
1045	1045	underpayment of taxes due to changes to this section that became law on
1046	1046	July 1, 2017, so long as such underpayment is rectified on or before April
1047	1047	17, 2018.
1048	1048	Sec. 4. K.S.A. 2022 Supp. 79-32,117 is hereby repealed.
1049	1049	Sec. 5. This act shall take effect and be in force from and after its
1050	1050	publication in the statute book.
1051	1051	1
1052	1052	2
1053	1053	3
1054	1054	4
1055	1055	5
1056	1056	6
1057	1057	7
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