Kansas 2023-2024 Regular Session

Kansas Senate Bill SB206 Compare Versions

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Old	New	Differences
1	1	Session of 2023
2	2	SENATE BILL No. 206
3	3	By Senators Holland and Francisco
4	4	2-8
5	5	AN ACT concerning abortion; enacting the medical
6	6	autonomy/accessibility and truth act; relating to the no taxpayer
7	7	funding for abortion act and the woman's-right-to-know act; removing
8	8	certain provisions thereof to allow for insurance coverage for abortions,
9	9	provide tax benefits for abortion-related services and remove inaccurate
10	10	statements regarding the risks of abortion; repealing the pain-capable
11	11	unborn child act; amending K.S.A. 40-2,103, 40-19c09, 40-2246, 65-
12	12	6709, 65-6733, 65-6734, 65-6737, 76-3308 and 79-32,195 and K.S.A.
13	13	2022 Supp. 79-32,117, 79-32,138, 79-32,182b and 79-32,261 and
14	14	repealing the existing sections; also repealing K.S.A. 40-2,190, 40-
15	15	2,191, 65-6722, 65-6723, 65-6724 and 65-6725.
16	16	WHEREAS, The provisions of this act shall be known and may be
17	17	cited as the medical autonomy/accessibility and truth act.
18	18	Now, therefore:
19	19	Be it enacted by the Legislature of the State of Kansas:
20	20	Section 1. K.S.A. 40-2,103 is hereby amended to read as follows: 40-
21	21	2,103. The requirements of K.S.A. 40-2,100, 40-2,101, 40-2,102, 40-
22	22	2,104, 40-2,105, 40-2,114, 40-2,160, 40-2,165 through 40-2,170, 40-2250,
23	23	K.S.A. 40-2,105a, 40-2,105b, 40-2,184, 40-2,190, 40-2,194 and 40-2,210
24	24	through 40-2,216, and amendments thereto, shall apply to all insurance
25	25	policies, subscriber contracts or certificates of insurance delivered,
26	26	renewed or issued for delivery within or outside of this state or used within
27	27	this state by or for an individual who resides or is employed in this state.
28	28	Sec. 2. K.S.A. 40-19c09 is hereby amended to read as follows: 40-
29	29	19c09. (a) Corporations organized under the nonprofit medical and
30	30	hospital service corporation act shall be subject to the provisions of the
31	31	Kansas general corporation code, articles 60 through 74 of chapter 17 of
32	32	the Kansas Statutes Annotated, and amendments thereto, applicable to
33	33	nonprofit corporations, to the provisions of K.S.A. 40-214, 40-215, 40-
34	34	216, 40-218, 40-219, 40-222, 40-223, 40-224, 40-225, 40-229, 40-230, 40-
35	35	231, 40-235, 40-236, 40-237, 40-247, 40-248, 40-249, 40-250, 40-251, 40-
36	36	252, 40-2,100, 40-2,101, 40-2,102, 40-2,103, 40-2,104, 40-2,105, 40-
37	37	2,116, 40-2,117, 40-2,125, 40-2,153, 40-2,154, 40-2,160, 40-2,161, 40-
38	38	2,163 through 40-2,170, 40-2a01 et seq., 40-2111 through 40-2116, 40-
39	39	2215 through 40-2220, 40-2221a, 40-2221b, 40-2229, 40-2230, 40-2250,
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76	76	40-2251, 40-2253, 40-2254, 40-2401 through 40-2421, and 40-3301
77	77	through 40-3313 and K.S.A. 40-2,105a, 40-2,105b, 40-2,184, 40-2,190,
78	78	40-2,194 and 40-2,210 through 40-2,216, and amendments thereto, except
79	79	as the context otherwise requires, and shall not be subject to any other
80	80	provisions of the insurance code except as expressly provided in this act.
81	81	(b) No policy, agreement, contract or certificate issued by a
82	82	corporation to which this section applies shall contain a provision which
83	83	excludes, limits or otherwise restricts coverage because medicaid benefits
84	84	as permitted by title XIX of the social security act of 1965 are or may be
85	85	available for the same accident or illness.
86	86	(c) Violation of subsection (b) shall be subject to the penalties
87	87	prescribed by K.S.A. 40-2407 and 40-2411, and amendments thereto.
88	88	Sec. 3. K.S.A. 40-2246 is hereby amended to read as follows: 40-
89	89	2246. (a) A credit against the taxes otherwise due under the Kansas income
90	90	tax act shall be allowed to an employer for amounts paid during the
91	91	taxable year for purposes of this act on behalf of an eligible employee as
92	92	defined in K.S.A. 40-2239, and amendments thereto, to provide health
93	93	insurance or care and amounts contributed to health savings accounts of
94	94	eligible covered employees, except that for taxable years commencing
95	95	after December 31, 2013, no credit shall be allowed pursuant to this
96	96	section for that portion of any amounts paid by an employer for healthcare
97	97	expenditures, a health benefit plan, as defined in K.S.A. 65-6731, and
98	98	amendments thereto, or amounts contributed to health savings accounts for
99	99	the purchase of an optional rider for coverage of abortion in accordance
100	100	with K.S.A. 40-2,190, and amendments thereto.
101	101	(b) (1) For employers that have established a small employer health
102	102	benefit plan after December 31, 1999, but prior to January 1, 2005, the
103	103	amount of the credit allowed by subsection (a) shall be $35 per month per
104	104	eligible covered employee or 50% of the total amount paid by the
105	105	employer during the taxable year, whichever is less, for the first two years
106	106	of participation. In the third year, the credit shall be equal to 75% of the
107	107	lesser of $35 per month per employee or 50% of the total amount paid by
108	108	the employer during the taxable year. In the fourth year, the credit shall be
109	109	equal to 50% of the lesser of $35 per month per employee or 50% of the
110	110	total amount paid by the employer during the taxable year. In the fifth year,
111	111	the credit shall be equal to 25% of the lesser of $35 per month per
112	112	employee or 50% of the total amount paid by the employer during the
113	113	taxable year. For the sixth and subsequent years, no credit shall be
114	114	allowed.
115	115	(2) For employers that have established a small employer health
116	116	benefit plan or made contributions to a health savings account of an
117	117	eligible covered employee after December 31, 2004, the amount of credit
118	118	allowed by subsection (a) shall be $70 per month per eligible covered
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162	162	employee for the first 12 months of participation, $50 per month per
163	163	eligible covered employee for the next 12 months of participation and $35
164	164	per eligible covered employee for the next 12 months of participation.
165	165	After 36 months of participation, no credit shall be allowed.
166	166	(c) If the credit allowed by this section is claimed, the amount of any
167	167	deduction allowable under the Kansas income tax act for expenses
168	168	described in this section shall be reduced by the dollar amount of the
169	169	credit. The election to claim the credit shall be made at the time of filing
170	170	the tax return in accordance with law. If the credit allowed by this section
171	171	exceeds the taxes imposed under the Kansas income tax act for the taxable
172	172	year, that portion of the credit which exceeds those taxes shall be refunded
173	173	to the taxpayer.
174	174	(d) Any amount of expenses paid by an employer under this act shall
175	175	not be included as income to the employee for purposes of the Kansas
176	176	income tax act. If such expenses have been included in federal taxable
177	177	income of the employee, the amount included shall be subtracted in
178	178	arriving at state taxable income under the Kansas income tax act.
179	179	(e) The secretary of revenue shall promulgate rules and regulations to
180	180	carry out the provisions of this section.
181	181	(f) This section shall apply to all taxable years commencing after
182	182	December 31, 1999.
183	183	(g) For tax year 2013 and all tax years thereafter, the income tax
184	184	credit provided by this section shall only be available to taxpayers subject
185	185	to the income tax on corporations imposed pursuant to subsection (c) of
186	186	K.S.A. 79-32,110(c), and amendments thereto, and shall be applied only
187	187	against such taxpayer's corporate income tax liability.
188	188	Sec. 4. K.S.A. 65-6709 is hereby amended to read as follows: 65-
189	189	6709. No abortion shall be performed or induced without the voluntary
190	190	and informed consent of the woman upon whom the abortion is to be
191	191	performed or induced. Except in the case of a medical emergency, consent
192	192	to an abortion is voluntary and informed only if:
193	193	(a) At least 24 hours before the abortion the physician who is to
194	194	perform the abortion or the referring physician has informed the woman in
195	195	writing, which shall be provided on white paper in a printed format in
196	196	black ink with 12-point times new roman font, of:
197	197	(1) The following information concerning the physician who will
198	198	perform the abortion;
199	199	(A) The name of such physician;
200	200	(B) the year in which such physician received a medical doctor's
201	201	degree;
202	202	(C) the date on which such physician's employment commenced at
203	203	the facility where the abortion is to be performed;
204	204	(D) whether any disciplinary action has been taken against such
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248	248	physician by the state board of healing arts by marking either a box
249	249	indicating "yes" or a box indicating "no" and if the box indicating "yes" is
250	250	marked, then provide the website addresses to the board documentation for
251	251	each disciplinary action;
252	252	(E) whether such physician has malpractice insurance by marking
253	253	either a box indicating "yes" or a box indicating "no";
254	254	(F) whether such physician has clinical privileges at any hospital
255	255	located within 30 miles of the facility where the abortion is to be
256	256	performed by marking either a box indicating "yes" or a box indicating
257	257	"no" and if the box indicating "yes" is marked, then provide the name of
258	258	each such hospital and the date such privileges were issued;
259	259	(G) the name of any hospital where such physician has lost clinical
260	260	privileges; and
261	261	(H) whether such physician is a resident of this state by marking
262	262	either a box indicating "yes" or a box indicating "no";
263	263	(2) a description of the proposed abortion method;
264	264	(3) a description of risks related to the proposed abortion method,
265	265	including risk of premature birth in future pregnancies, risk of breast
266	266	cancer and risks to the woman's reproductive health and alternatives to the
267	267	abortion that a reasonable patient would consider material to the decision
268	268	of whether or not to undergo the abortion;
269	269	(4) the probable gestational age of the unborn child at the time the
270	270	abortion is to be performed and that Kansas law requires the following:
271	271	"No person shall perform or induce an abortion when the unborn child is
272	272	viable unless such person is a physician and has a documented referral
273	273	from another physician not financially associated with the physician
274	274	performing or inducing the abortion and both physicians determine that:
275	275	(1) The abortion is necessary to preserve the life of the pregnant woman;
276	276	or (2) a continuation of the pregnancy will cause a substantial and
277	277	irreversible physical impairment of a major bodily function of the pregnant
278	278	woman." If the child is born alive, the attending physician has the legal
279	279	obligation to take all reasonable steps necessary to maintain the life and
280	280	health of the child;
281	281	(5)(4) the probable anatomical and physiological characteristics of the
282	282	unborn child at the time the abortion is to be performed;
283	283	(6)(5) the contact information for counseling assistance for medically
284	284	challenging pregnancies, the contact information for perinatal hospice
285	285	services and a listing of websites for national perinatal assistance,
286	286	including information regarding which entities provide such services free
287	287	of charge;
288	288	(7)(6) the medical risks associated with carrying an unborn child to
289	289	term; and
290	290	(8)(7) any need for anti-Rh immune globulin therapy, if she is Rh
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334	334	negative, the likely consequences of refusing such therapy and the cost of
335	335	the therapy.
336	336	(b) At least 24 hours before the abortion, the physician who is to
337	337	perform the abortion, the referring physician or a qualified person has
338	338	informed the woman in writing that:
339	339	(1) Medical assistance benefits may be available for prenatal care,
340	340	childbirth and neonatal care, and that more detailed information on the
341	341	availability of such assistance is contained in the printed materials given to
342	342	her and described in K.S.A. 65-6710, and amendments thereto;
343	343	(2) the informational materials in K.S.A. 65-6710, and amendments
344	344	thereto, are available in printed form and online, and describe the unborn
345	345	child, list agencies which offer alternatives to abortion with a special
346	346	section listing adoption services and list providers of free ultrasound
347	347	services;
348	348	(3) the father of the unborn child is liable to assist in the support of
349	349	her child, even in instances where he has offered to pay for the abortion
350	350	except that in the case of rape this information may be omitted;
351	351	(4) the woman is free to withhold or withdraw her consent to the
352	352	abortion at any time prior to invasion of the uterus without affecting her
353	353	right to future care or treatment and without the loss of any state or
354	354	federally-funded benefits to which she might otherwise be entitled;
355	355	(5) the abortion will terminate the life of a whole, separate, unique,
356	356	living human being; and
357	357	(6) by no later than 20 weeks from fertilization, the unborn child has
358	358	the physical structures necessary to experience pain. There is evidence that
359	359	by 20 weeks from fertilization unborn children seek to evade certain
360	360	stimuli in a manner that in an infant or an adult would be interpreted to be
361	361	a response to pain. Anesthesia is routinely administered to unborn children
362	362	who are 20 weeks from fertilization or older who undergo prenatal surgery.
363	363	(c) At least 30 minutes prior to the abortion procedure, prior to
364	364	physical preparation for the abortion and prior to the administration of
365	365	medication for the abortion, the woman shall meet privately with the
366	366	physician who is to perform the abortion and such person's staff to ensure
367	367	that she has an adequate opportunity to ask questions of and obtain
368	368	information from the physician concerning the abortion.
369	369	(d) At least 24 hours before the abortion, the woman is given a copy
370	370	of the informational materials described in K.S.A. 65-6710, and
371	371	amendments thereto. If the woman asks questions concerning any of the
372	372	information or materials, answers shall be provided to her in her own
373	373	language.
374	374	(e) The woman certifies in writing on a form provided by the
375	375	department, prior to the abortion, that the information required to be
376	376	provided under subsections (a), (b) and (d) has been provided and that she
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420	420	has met with the physician who is to perform the abortion on an individual
421	421	basis as provided under subsection (c). All physicians who perform
422	422	abortions shall report the total number of certifications received monthly
423	423	to the department. The total number of certifications shall be reported by
424	424	the physician as part of the written report made by the physician to the
425	425	secretary of health and environment under K.S.A. 65-445, and
426	426	amendments thereto. The department shall make the number of
427	427	certifications received available on an annual basis.
428	428	(f) Prior to the performance of the abortion, the physician who is to
429	429	perform the abortion or the physician's agent receives a copy of the written
430	430	certification prescribed by subsection (e) of this section.
431	431	(g) The woman is not required to pay any amount for the abortion
432	432	procedure until the 24-hour waiting period has expired.
433	433	(h) A physician who will use ultrasound equipment preparatory to or
434	434	in the performance of the abortion, at least 30 minutes prior to the
435	435	performance of the abortion:
436	436	(1) Informs the woman that she has the right to view the ultrasound
437	437	image of her unborn child, at no additional expense to her;
438	438	(2) informs the woman that she has the right to receive a physical
439	439	picture of the ultrasound image, at no additional expense to her;
440	440	(3) offers the woman the opportunity to view the ultrasound image
441	441	and receive a physical picture of the ultrasound image;
442	442	(4) certifies in writing that the woman was offered the opportunity to
443	443	view the ultrasound image and receive a physical picture of the ultrasound
444	444	image at least 30 minutes prior to the performance of the abortion; and
445	445	(5) obtains the woman's signed acceptance or rejection of the
446	446	opportunity to view the ultrasound image and receive a physical picture of
447	447	the ultrasound image.
448	448	If the woman accepts the offer and requests to view the ultrasound
449	449	image, receive a physical picture of the ultrasound image or both, her
450	450	request shall be granted by the physician at no additional expense to the
451	451	woman. The physician's certification shall be time-stamped at the time the
452	452	opportunity to view the ultrasound image and receive a physical picture of
453	453	the ultrasound image was offered.
454	454	(i) A physician who will use heart monitor equipment preparatory to
455	455	or in the performance of the abortion, at least 30 minutes prior to the
456	456	performance of the abortion:
457	457	(1) Informs the woman that she has the right to listen to the heartbeat
458	458	of her unborn child, at no additional expense to her;
459	459	(2) offers the woman the opportunity to listen to the heartbeat of her
460	460	unborn child;
461	461	(3) certifies in writing that the woman was offered the opportunity to
462	462	listen to the heartbeat of her unborn child at least 30 minutes prior to the
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506	506	performance of the abortion; and
507	507	(4) obtains the woman's signed acceptance or rejection of the
508	508	opportunity to listen to the heartbeat of her unborn child.
509	509	If the woman accepts the offer and requests to listen to the heartbeat of
510	510	her unborn child, her request shall be granted by the physician at no
511	511	additional expense to the woman. The physician's certification shall be
512	512	time-stamped at the time the opportunity to listen to the heartbeat of her
513	513	unborn child was offered.
514	514	(j) The physician's certification required by subsections (h) and (i)
515	515	together with the pregnant woman's signed acceptance or rejection of such
516	516	offer shall be placed in the woman's medical file in the physician's office
517	517	and kept for 10 years. However, in the case of a minor, the physician shall
518	518	keep a copy of the certification and the signed acceptance or rejection in
519	519	the minor's medical file for five years past the minor's majority, but in no
520	520	event less than 10 years.
521	521	(k) Any private office, freestanding surgical outpatient clinic or other
522	522	facility or clinic in which abortions are performed shall conspicuously post
523	523	a sign in a location so as to be clearly visible to patients. The sign required
524	524	pursuant to this subsection shall be printed with lettering that is legible and
525	525	shall be at least three quarters of an inch boldfaced type. The sign shall
526	526	include the address for the pregnancy resources website published and
527	527	maintained by the department of health and environment, and the
528	528	following text:
529	529	Notice: It is against the law for anyone, regardless of their relationship
530	530	to you, to force you to have an abortion. By law, we cannot perform an
531	531	abortion on you unless we have your freely given and voluntary consent. It
532	532	is against the law to perform an abortion on you against your will. You
533	533	have the right to contact any local or state law enforcement agency to
534	534	receive protection from any actual or threatened physical abuse or
535	535	violence. You have the right to change your mind at any time prior to the
536	536	actual abortion and request that the abortion procedure cease. It is
537	537	unlawful for anyone to make you have an abortion against your will, even
538	538	if you are a minor. The father of your child must provide support for the
539	539	child, even if he has offered to pay for an abortion. If you decide not to
540	540	have an abortion, you may qualify for financial help for pregnancy,
541	541	childbirth and newborn care. If you qualify, medicaid will pay or help pay
542	542	the cost of doctor, clinic, hospital and other related medical expenses,
543	543	including childbirth delivery services and care for your newborn baby.
544	544	Many agencies are willing to provide assistance so that you may carry
545	545	your child to term, and to assist you after your child's birth.
546	546	The provisions of this subsection shall not apply to any private office,
547	547	freestanding surgical outpatient clinic or other facility or clinic which
548	548	performs abortions only when necessary to prevent the death of the
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592	592	pregnant woman.
593	593	(l) Any private office, freestanding surgical outpatient clinic or other
594	594	facility or clinic in which abortions are performed that has a website shall
595	595	publish an easily identifiable link on the homepage of such website that
596	596	directly links to the department of health and environment's website that
597	597	provides informed consent materials under the woman's-right-to-know act.
598	598	Such link shall read: "The Kansas Department of Health and Environment
599	599	maintains a website containing information about the development of the
600	600	unborn child, as well as video of sonogram images of the unborn child at
601	601	various stages of development. The Kansas Department of Health and
602	602	Environment's website can be reached by clicking here."
603	603	(m) For purposes of this section:
604	604	(1) The term "human being" means an individual living member of
605	605	the species of homo sapiens, including the unborn human being during the
606	606	entire embryonic and fetal ages from fertilization to full gestation.
607	607	(2) The term "medically challenging pregnancy" means a pregnancy
608	608	where the unborn child is diagnosed as having: (A) A severe anomaly; or
609	609	(B) an illness, disease or defect which is invariably fatal.
610	610	Sec. 5. K.S.A. 65-6733 is hereby amended to read as follows: 65-
611	611	6733. Except to the extent required by federal law:
612	612	(a) , no moneys appropriated from the state general fund or from any
613	613	special revenue fund shall be expended for any abortion;
614	614	(b) no tax credit shall be allowed against any income tax, premium or
615	615	privilege tax liability and no exemption shall be granted from sales or
616	616	compensating use tax for that portion of such amounts paid or incurred for
617	617	an abortion, or that portion of such amounts paid or incurred for a health
618	618	benefit plan, including premium assistance, for the purchase of an optional
619	619	rider for coverage of abortion in accordance with K.S.A. 40-2,190, and
620	620	amendments thereto;
621	621	(c) in the case of any tax-preferred trust or account, the purpose of
622	622	which is to pay medical expenses of the account beneficiary, any amount
623	623	paid or distributed from such an account for an abortion shall be included
624	624	in the gross income of such beneficiary; and
625	625	(d) no health care services provided by any state agency, or any
626	626	employee of a state agency while acting within the scope of such
627	627	employee's employment, shall include abortion, nor shall money
628	628	appropriated from the state general fund or from any special revenue fund
629	629	be used to pay for the lease or operation of any facility in which abortions
630	630	are performed.
631	631	Sec. 6. K.S.A. 65-6734 is hereby amended to read as follows: 65-
632	632	6734. No school district, employee or agent thereof, or educational service
633	633	provider contracting with such school district shall provide abortion
634	634	services. No school district shall permit any person or entity to offer,
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678	678	sponsor or otherwise furnish in any manner any course materials or
679	679	instruction relating to human sexuality or sexually transmitted diseases if
680	680	such person or entity is an abortion services provider, or an employee,
681	681	agent or volunteer of an abortion services provider.
682	682	Sec. 7. K.S.A. 65-6737 is hereby amended to read as follows: 65-
683	683	6737. No state agency shall discriminate against any individual or
684	684	institutional health care entity on the basis that of whether or not such
685	685	health care entity does not provide, pay for or refer provides, pays for or
686	686	refers patients for abortions.
687	687	Sec. 8. K.S.A. 76-3308 is hereby amended to read as follows: 76-
688	688	3308.(a) The authority shall have all the powers necessary to carry out the
689	689	purposes and provisions of this act, including, without limitation, the
690	690	following powers to:
691	691	(1) Have the duties, privileges, immunities, rights, liabilities and
692	692	disabilities of a body corporate and a political instrumentality of the state;
693	693	(2) have perpetual existence and succession;
694	694	(3) adopt, have and use a seal and to alter the same at its pleasure;
695	695	(4) sue and be sued in its own name;
696	696	(5) make and execute contracts, guarantees or any other instruments
697	697	and agreements necessary or convenient for the exercise of its powers and
698	698	functions including, without limitation, to make and execute contracts with
699	699	hospitals or other health care businesses to operate and manage any or all
700	700	of the hospital facilities or operations and to incur liabilities and secure the
701	701	obligations of any entity or individual;
702	702	(6) borrow money and to issue bonds evidencing the same and pledge
703	703	all or any part of the authority's assets therefor;
704	704	(7) purchase, lease, trade, exchange or otherwise acquire, maintain,
705	705	hold, improve, mortgage, sell, lease and dispose of personal property,
706	706	whether tangible or intangible, and any interest therein; and to purchase,
707	707	lease, trade, exchange or otherwise acquire real property or any interest
708	708	therein, and to maintain, hold, improve, mortgage, lease and otherwise
709	709	transfer such real property, so long as such transactions do not conflict
710	710	with the mission of the authority as specified in this act;
711	711	(8) incur or assume indebtedness to, and enter into contracts with the
712	712	Kansas development finance authority, which is authorized to borrow
713	713	money and provide financing for the authority;
714	714	(9) develop policies and procedures generally applicable to the
715	715	procurement of goods, services and construction, based upon sound
716	716	business practices;
717	717	(10) contract for and to accept any gifts, grants and loans of funds,
718	718	property, or any other aid in any form from the federal government, the
719	719	state, any state agency, or any other source, or any combination thereof,
720	720	and to comply with the provisions of the terms and conditions thereof;
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764	764	(11) acquire space, equipment, services, supplies and insurance
765	765	necessary to carry out the purposes of this act;
766	766	(12) deposit any moneys of the authority in any banking institution
767	767	within or without the state or in any depository authorized to receive such
768	768	deposits, one or more persons to act as custodians of the moneys of the
769	769	authority, to give surety bonds in such amounts in form and for such
770	770	purposes as the board requires;
771	771	(13) procure such insurance, participate in such insurance plans or
772	772	provide such self insurance or both as it deems necessary or convenient to
773	773	carry out the purposes and provisions of this act; the purchase of
774	774	insurance, participation in an insurance plan or creation of a self-insurance
775	775	fund by the authority shall not be deemed as a waiver or relinquishment of
776	776	any sovereign immunity to which the authority or its officers, directors,
777	777	employees or agents are otherwise entitled;
778	778	(14) appoint, supervise and set the salary and compensation of a
779	779	president of the authority who shall be appointed by and serve at the
780	780	pleasure of the board;
781	781	(15) fix, revise, charge and collect rates, rentals, fees and other
782	782	charges for the services or facilities furnished by or on behalf of the
783	783	authority, and to establish policies and procedures regarding any such
784	784	service rendered for the use, occupancy or operation of any such facility;
785	785	such charges and policies and procedures not to be subject to supervision
786	786	or regulation by any commission, board, bureau or agency of the state; and
787	787	(16) do any and all things necessary or convenient to carry out the
788	788	authority's purposes and exercise the powers given in this act.
789	789	(b) The authority may create, own in whole or in part, or otherwise
790	790	acquire or dispose of any entity organized for a purpose related to or in
791	791	support of the mission of the authority.
792	792	(c) The authority may participate in joint ventures with individuals,
793	793	corporations, governmental bodies or agencies, partnerships, associations,
794	794	insurers or other entities to facilitate any activities or programs consistent
795	795	with the public purpose and intent of this act.
796	796	(d) The authority may create a nonprofit entity or entities for the
797	797	purpose of soliciting, accepting and administering grants, outright gifts and
798	798	bequests, endowment gifts and bequests and gifts and bequests in trust
799	799	which entity or entities shall not engage in trust business.
800	800	(e) In carrying out any activities authorized by this act, the authority
801	801	may provide appropriate assistance, including the making of loans and
802	802	providing time of employees, to corporations, partnerships, associations,
803	803	joint ventures or other entities, whether or not such corporations,
804	804	partnerships, associations, joint ventures or other entities are owned or
805	805	controlled in whole or in part, directly or indirectly, by the authority.
806	806	(f) Effective with the transfer date, all moneys of the authority shall
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850	850	be deposited in one or more banks or trust companies in one or more
851	851	special accounts. All banks and trust companies are authorized to give
852	852	security for such deposits if required by the authority. The moneys in such
853	853	accounts shall be paid out on a warrant or other orders of the treasurer of
854	854	the authority or any such other person or persons as the authority may
855	855	authorize to execute such warrants or orders.
856	856	(g) Notwithstanding any provision of law to the contrary, the
857	857	authority, effective with the transfer date, may invest the authority's
858	858	operating funds in any obligations or securities as authorized by the board.
859	859	The board shall adopt written investment guidelines.
860	860	(h) The authority is authorized to negotiate contracts with one or
861	861	more qualified parties to provide collection services. The selection of a
862	862	collection services provider shall be based on responses to a request for
863	863	proposals from qualified professional firms and shall be administered in
864	864	accordance with policies adopted by the board.
865	865	(i) Notwithstanding any provision of law to the contrary, no abortion
866	866	shall be performed, except in the event of a medical emergency, in any
867	867	medical facility, hospital or clinic owned, leased or operated by the
868	868	authority. The provisions of this subsection are not applicable to any
869	869	member of the physician faculty of the university of Kansas school of
870	870	medicine when such abortion is performed outside the scope of such
871	871	member's employment on property not owned, leased or operated by the
872	872	authority. As used in this subsection, "medical emergency" means a
873	873	condition that, in reasonable medical judgment, so complicates the medical
874	874	condition of the pregnant woman as to necessitate the immediate abortion
875	875	of her pregnancy to avert the death of the woman or for which a delay
876	876	necessary to comply with the applicable statutory requirements will create
877	877	serious risk of substantial and irreversible physical impairment of a major
878	878	bodily function. No condition shall be deemed a medical emergency if
879	879	based on a claim or diagnosis that the woman will engage in conduct
880	880	which would result in her death or in substantial and irreversible physical
881	881	impairment of a major bodily function.
882	882	Sec. 9. K.S.A. 2022 Supp. 79-32,117 is hereby amended to read as
883	883	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
884	884	means such individual's federal adjusted gross income for the taxable year,
885	885	with the modifications specified in this section.
886	886	(b) There shall be added to federal adjusted gross income:
887	887	(i) Interest income less any related expenses directly incurred in the
888	888	purchase of state or political subdivision obligations, to the extent that the
889	889	same is not included in federal adjusted gross income, on obligations of
890	890	any state or political subdivision thereof, but to the extent that interest
891	891	income on obligations of this state or a political subdivision thereof issued
892	892	prior to January 1, 1988, is specifically exempt from income tax under the
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936	936	laws of this state authorizing the issuance of such obligations, it shall be
937	937	excluded from computation of Kansas adjusted gross income whether or
938	938	not included in federal adjusted gross income. Interest income on
939	939	obligations of this state or a political subdivision thereof issued after
940	940	December 31, 1987, shall be excluded from computation of Kansas
941	941	adjusted gross income whether or not included in federal adjusted gross
942	942	income.
943	943	(ii) Taxes on or measured by income or fees or payments in lieu of
944	944	income taxes imposed by this state or any other taxing jurisdiction to the
945	945	extent deductible in determining federal adjusted gross income and not
946	946	credited against federal income tax. This paragraph shall not apply to taxes
947	947	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
948	948	amendments thereto, for privilege tax year 1995, and all such years
949	949	thereafter.
950	950	(iii) The federal net operating loss deduction, except that the federal
951	951	net operating loss deduction shall not be added to an individual's federal
952	952	adjusted gross income for tax years beginning after December 31, 2016.
953	953	(iv) Federal income tax refunds received by the taxpayer if the
954	954	deduction of the taxes being refunded resulted in a tax benefit for Kansas
955	955	income tax purposes during a prior taxable year. Such refunds shall be
956	956	included in income in the year actually received regardless of the method
957	957	of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
958	958	be deemed to have resulted if the amount of the tax had been deducted in
959	959	determining income subject to a Kansas income tax for a prior year
960	960	regardless of the rate of taxation applied in such prior year to the Kansas
961	961	taxable income, but only that portion of the refund shall be included as
962	962	bears the same proportion to the total refund received as the federal taxes
963	963	deducted in the year to which such refund is attributable bears to the total
964	964	federal income taxes paid for such year. For purposes of the foregoing
965	965	sentence, federal taxes shall be considered to have been deducted only to
966	966	the extent such deduction does not reduce Kansas taxable income below
967	967	zero.
968	968	(v) The amount of any depreciation deduction or business expense
969	969	deduction claimed on the taxpayer's federal income tax return for any
970	970	capital expenditure in making any building or facility accessible to the
971	971	handicapped, for which expenditure the taxpayer claimed the credit
972	972	allowed by K.S.A. 79-32,177, and amendments thereto.
973	973	(vi) Any amount of designated employee contributions picked up by
974	974	an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
975	975	and amendments thereto.
976	976	(vii) The amount of any charitable contribution made to the extent the
977	977	same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
978	978	32,196, and amendments thereto.
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1022	1022	(viii) The amount of any costs incurred for improvements to a swine
1023	1023	facility, claimed for deduction in determining federal adjusted gross
1024	1024	income, to the extent the same is claimed as the basis for any credit
1025	1025	allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
1026	1026	(ix) The amount of any ad valorem taxes and assessments paid and
1027	1027	the amount of any costs incurred for habitat management or construction
1028	1028	and maintenance of improvements on real property, claimed for deduction
1029	1029	in determining federal adjusted gross income, to the extent the same is
1030	1030	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
1031	1031	and amendments thereto.
1032	1032	(x) Amounts received as nonqualified withdrawals, as defined by
1033	1033	K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
1034	1034	family postsecondary education savings account, such amounts were
1035	1035	subtracted from the federal adjusted gross income pursuant to K.S.A. 79-
1036	1036	32,117(c)(xv), and amendments thereto, or if such amounts are not already
1037	1037	included in the federal adjusted gross income.
1038	1038	(xi) The amount of any contribution made to the same extent the
1039	1039	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
1040	1040	50,154, and amendments thereto.
1041	1041	(xii) For taxable years commencing after December 31, 2004,
1042	1042	amounts received as withdrawals not in accordance with the provisions of
1043	1043	K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
1044	1044	to an individual development account, such amounts were subtracted from
1045	1045	the federal adjusted gross income pursuant to subsection (c)(xiii), or if
1046	1046	such amounts are not already included in the federal adjusted gross
1047	1047	income.
1048	1048	(xiii) The amount of any expenditures claimed for deduction in
1049	1049	determining federal adjusted gross income, to the extent the same is
1050	1050	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
1051	1051	through 79-32,220 or 79-32,222, and amendments thereto.
1052	1052	(xiv) The amount of any amortization deduction claimed in
1053	1053	determining federal adjusted gross income to the extent the same is
1054	1054	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
1055	1055	thereto.
1056	1056	(xv) The amount of any expenditures claimed for deduction in
1057	1057	determining federal adjusted gross income, to the extent the same is
1058	1058	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
1059	1059	through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
1060	1060	32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
1061	1061	32,251 through 79-32,254, and amendments thereto.
1062	1062	(xvi) The amount of any amortization deduction claimed in
1063	1063	determining federal adjusted gross income to the extent the same is
1064	1064	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
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1108	1108	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
1109	1109	(xvii) The amount of any amortization deduction claimed in
1110	1110	determining federal adjusted gross income to the extent the same is
1111	1111	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
1112	1112	thereto.
1113	1113	(xviii) For taxable years commencing after December 31, 2006, the
1114	1114	amount of any ad valorem or property taxes and assessments paid to a state
1115	1115	other than Kansas or local government located in a state other than Kansas
1116	1116	by a taxpayer who resides in a state other than Kansas, when the law of
1117	1117	such state does not allow a resident of Kansas who earns income in such
1118	1118	other state to claim a deduction for ad valorem or property taxes or
1119	1119	assessments paid to a political subdivision of the state of Kansas in
1120	1120	determining taxable income for income tax purposes in such other state, to
1121	1121	the extent that such taxes and assessments are claimed as an itemized
1122	1122	deduction for federal income tax purposes.
1123	1123	(xix) For taxable years beginning after December 31, 2012, and
1124	1124	ending before January 1, 2017, the amount of any: (1) Loss from business
1125	1125	as determined under the federal internal revenue code and reported from
1126	1126	schedule C and on line 12 of the taxpayer's form 1040 federal individual
1127	1127	income tax return; (2) loss from rental real estate, royalties, partnerships, S
1128	1128	corporations, except those with wholly owned subsidiaries subject to the
1129	1129	Kansas privilege tax, estates, trusts, residual interest in real estate
1130	1130	mortgage investment conduits and net farm rental as determined under the
1131	1131	federal internal revenue code and reported from schedule E and on line 17
1132	1132	of the taxpayer's form 1040 federal individual income tax return; and (3)
1133	1133	farm loss as determined under the federal internal revenue code and
1134	1134	reported from schedule F and on line 18 of the taxpayer's form 1040
1135	1135	federal income tax return; all to the extent deducted or subtracted in
1136	1136	determining the taxpayer's federal adjusted gross income. For purposes of
1137	1137	this subsection, references to the federal form 1040 and federal schedule
1138	1138	C, schedule E, and schedule F, shall be to such form and schedules as they
1139	1139	existed for tax year 2011, and as revised thereafter by the internal revenue
1140	1140	service.
1141	1141	(xx) For taxable years beginning after December 31, 2012, and
1142	1142	ending before January 1, 2017, the amount of any deduction for self-
1143	1143	employment taxes under section 164(f) of the federal internal revenue
1144	1144	code as in effect on January 1, 2012, and amendments thereto, in
1145	1145	determining the federal adjusted gross income of an individual taxpayer, to
1146	1146	the extent the deduction is attributable to income reported on schedule C,
1147	1147	E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
1148	1148	tax return.
1149	1149	(xxi) For taxable years beginning after December 31, 2012, and
1150	1150	ending before January 1, 2017, the amount of any deduction for pension,
1151	1151	1
1152	1152	2
1153	1153	3
1154	1154	4
1155	1155	5
1156	1156	6
1157	1157	7
1158	1158	8
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1160	1160	10
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1163	1163	13
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1181	1181	31
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1183	1183	33
1184	1184	34
1185	1185	35
1186	1186	36
1187	1187	37
1188	1188	38
1189	1189	39
1190	1190	40
1191	1191	41
1192	1192	42
1193	1193	43 SB 206 15
1194	1194	profit sharing, and annuity plans of self-employed individuals under
1195	1195	section 62(a)(6) of the federal internal revenue code as in effect on January
1196	1196	1, 2012, and amendments thereto, in determining the federal adjusted gross
1197	1197	income of an individual taxpayer.
1198	1198	(xxii) For taxable years beginning after December 31, 2012, and
1199	1199	ending before January 1, 2017, the amount of any deduction for health
1200	1200	insurance under section 162(l) of the federal internal revenue code as in
1201	1201	effect on January 1, 2012, and amendments thereto, in determining the
1202	1202	federal adjusted gross income of an individual taxpayer.
1203	1203	(xxiii) For taxable years beginning after December 31, 2012, and
1204	1204	ending before January 1, 2017, the amount of any deduction for domestic
1205	1205	production activities under section 199 of the federal internal revenue code
1206	1206	as in effect on January 1, 2012, and amendments thereto, in determining
1207	1207	the federal adjusted gross income of an individual taxpayer.
1208	1208	(xxiv) For taxable years commencing after December 31, 2013, that
1209	1209	portion of the amount of any expenditure deduction claimed in
1210	1210	determining federal adjusted gross income for expenses paid for medical
1211	1211	care of the taxpayer or the taxpayer's spouse or dependents when such
1212	1212	expenses were paid or incurred for an abortion, or for a health benefit plan,
1213	1213	as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
1214	1214	an optional rider for coverage of abortion in accordance with K.S.A. 40-
1215	1215	2,190, and amendments thereto, to the extent that such taxes and
1216	1216	assessments are claimed as an itemized deduction for federal income tax
1217	1217	purposes.
1218	1218	(xxv) For taxable years commencing after December 31, 2013, that
1219	1219	portion of the amount of any expenditure deduction claimed in
1220	1220	determining federal adjusted gross income for expenses paid by a taxpayer
1221	1221	for health care when such expenses were paid or incurred for abortion
1222	1222	coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
1223	1223	amendments thereto, when such expenses were paid or incurred for
1224	1224	abortion coverage or amounts contributed to health savings accounts for
1225	1225	such taxpayer's employees for the purchase of an optional rider for
1226	1226	coverage of abortion in accordance with K.S.A. 40-2,190, and
1227	1227	amendments thereto, to the extent that such taxes and assessments are
1228	1228	claimed as a deduction for federal income tax purposes.
1229	1229	(xxvi) For all taxable years beginning after December 31, 2016, the
1230	1230	amount of any charitable contribution made to the extent the same is
1231	1231	claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
1232	1232	amendments thereto, and is also claimed as an itemized deduction for
1233	1233	federal income tax purposes.
1234	1234	(xxvii)(xxv) For all taxable years commencing after December 31,
1235	1235	2020, the amount deducted by reason of a carryforward of disallowed
1236	1236	business interest pursuant to section 163(j) of the federal internal revenue
1237	1237	1
1238	1238	2
1239	1239	3
1240	1240	4
1241	1241	5
1242	1242	6
1243	1243	7
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1275	1275	39
1276	1276	40
1277	1277	41
1278	1278	42
1279	1279	43 SB 206 16
1280	1280	code of 1986, as in effect on January 1, 2018.
1281	1281	(xxviii)(xxvi) For all taxable years beginning after December 31,
1282	1282	2021, the amount of any contributions to, or earnings from, a first-time
1283	1283	home buyer savings account if distributions from the account were not
1284	1284	used to pay for expenses or transactions authorized pursuant to K.S.A.
1285	1285	2022 Supp. 58-4904, and amendments thereto, or were not held for the
1286	1286	minimum length of time required pursuant to K.S.A. 2022 Supp. 58-4904,
1287	1287	and amendments thereto. Contributions to, or earnings from, such account
1288	1288	shall also include any amount resulting from the account holder not
1289	1289	designating a surviving transfer on death beneficiary pursuant to K.S.A.
1290	1290	2022 Supp. 58-4904(e), and amendments thereto.
1291	1291	(c) There shall be subtracted from federal adjusted gross income:
1292	1292	(i) Interest or dividend income on obligations or securities of any
1293	1293	authority, commission or instrumentality of the United States and its
1294	1294	possessions less any related expenses directly incurred in the purchase of
1295	1295	such obligations or securities, to the extent included in federal adjusted
1296	1296	gross income but exempt from state income taxes under the laws of the
1297	1297	United States.
1298	1298	(ii) Any amounts received which are included in federal adjusted
1299	1299	gross income but which are specifically exempt from Kansas income
1300	1300	taxation under the laws of the state of Kansas.
1301	1301	(iii) The portion of any gain or loss from the sale or other disposition
1302	1302	of property having a higher adjusted basis for Kansas income tax purposes
1303	1303	than for federal income tax purposes on the date such property was sold or
1304	1304	disposed of in a transaction in which gain or loss was recognized for
1305	1305	purposes of federal income tax that does not exceed such difference in
1306	1306	basis, but if a gain is considered a long-term capital gain for federal
1307	1307	income tax purposes, the modification shall be limited to that portion of
1308	1308	such gain which is included in federal adjusted gross income.
1309	1309	(iv) The amount necessary to prevent the taxation under this act of
1310	1310	any annuity or other amount of income or gain which was properly
1311	1311	included in income or gain and was taxed under the laws of this state for a
1312	1312	taxable year prior to the effective date of this act, as amended, to the
1313	1313	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
1314	1314	the right to receive the income or gain, or to a trust or estate from which
1315	1315	the taxpayer received the income or gain.
1316	1316	(v) The amount of any refund or credit for overpayment of taxes on
1317	1317	or measured by income or fees or payments in lieu of income taxes
1318	1318	imposed by this state, or any taxing jurisdiction, to the extent included in
1319	1319	gross income for federal income tax purposes.
1320	1320	(vi) Accumulation distributions received by a taxpayer as a
1321	1321	beneficiary of a trust to the extent that the same are included in federal
1322	1322	adjusted gross income.
1323	1323	1
1324	1324	2
1325	1325	3
1326	1326	4
1327	1327	5
1328	1328	6
1329	1329	7
1330	1330	8
1331	1331	9
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1353	1353	31
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1361	1361	39
1362	1362	40
1363	1363	41
1364	1364	42
1365	1365	43 SB 206 17
1366	1366	(vii) Amounts received as annuities under the federal civil service
1367	1367	retirement system from the civil service retirement and disability fund and
1368	1368	other amounts received as retirement benefits in whatever form which
1369	1369	were earned for being employed by the federal government or for service
1370	1370	in the armed forces of the United States.
1371	1371	(viii) Amounts received by retired railroad employees as a
1372	1372	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
1373	1373	228c(a)(1) et seq.
1374	1374	(ix) Amounts received by retired employees of a city and by retired
1375	1375	employees of any board of such city as retirement allowances pursuant to
1376	1376	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
1377	1377	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
1378	1378	amendments thereto.
1379	1379	(x) For taxable years beginning after December 31, 1976, the amount
1380	1380	of the federal tentative jobs tax credit disallowance under the provisions of
1381	1381	26 U.S.C. § 280C. For taxable years ending after December 31, 1978, the
1382	1382	amount of the targeted jobs tax credit and work incentive credit
1383	1383	disallowances under 26 U.S.C. § 280C.
1384	1384	(xi) For taxable years beginning after December 31, 1986, dividend
1385	1385	income on stock issued by Kansas venture capital, inc.
1386	1386	(xii) For taxable years beginning after December 31, 1989, amounts
1387	1387	received by retired employees of a board of public utilities as pension and
1388	1388	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
1389	1389	and amendments thereto.
1390	1390	(xiii) For taxable years beginning after December 31, 2004, amounts
1391	1391	contributed to and the amount of income earned on contributions deposited
1392	1392	to an individual development account under K.S.A. 74-50,201 et seq., and
1393	1393	amendments thereto.
1394	1394	(xiv) For all taxable years commencing after December 31, 1996, that
1395	1395	portion of any income of a bank organized under the laws of this state or
1396	1396	any other state, a national banking association organized under the laws of
1397	1397	the United States, an association organized under the savings and loan
1398	1398	code of this state or any other state, or a federal savings association
1399	1399	organized under the laws of the United States, for which an election as an
1400	1400	S corporation under subchapter S of the federal internal revenue code is in
1401	1401	effect, which accrues to the taxpayer who is a stockholder of such
1402	1402	corporation and which is not distributed to the stockholders as dividends of
1403	1403	the corporation. For taxable years beginning after December 31, 2012, and
1404	1404	ending before January 1, 2017, the amount of modification under this
1405	1405	subsection shall exclude the portion of income or loss reported on schedule
1406	1406	E and included on line 17 of the taxpayer's form 1040 federal individual
1407	1407	income tax return.
1408	1408	(xv) For all taxable years beginning after December 31, 2017, the
1409	1409	1
1410	1410	2
1411	1411	3
1412	1412	4
1413	1413	5
1414	1414	6
1415	1415	7
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1417	1417	9
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1420	1420	12
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1423	1423	15
1424	1424	16
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1428	1428	20
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1433	1433	25
1434	1434	26
1435	1435	27
1436	1436	28
1437	1437	29
1438	1438	30
1439	1439	31
1440	1440	32
1441	1441	33
1442	1442	34
1443	1443	35
1444	1444	36
1445	1445	37
1446	1446	38
1447	1447	39
1448	1448	40
1449	1449	41
1450	1450	42
1451	1451	43 SB 206 18
1452	1452	cumulative amounts not exceeding $3,000, or $6,000 for a married couple
1453	1453	filing a joint return, for each designated beneficiary that are contributed to:
1454	1454	(1) A family postsecondary education savings account established under
1455	1455	the Kansas postsecondary education savings program or a qualified tuition
1456	1456	program established and maintained by another state or agency or
1457	1457	instrumentality thereof pursuant to section 529 of the internal revenue
1458	1458	code of 1986, as amended, for the purpose of paying the qualified higher
1459	1459	education expenses of a designated beneficiary; or (2) an achieving a
1460	1460	better life experience (ABLE) account established under the Kansas ABLE
1461	1461	savings program or a qualified ABLE program established and maintained
1462	1462	by another state or agency or instrumentality thereof pursuant to section
1463	1463	529A of the internal revenue code of 1986, as amended, for the purpose of
1464	1464	saving private funds to support an individual with a disability. The terms
1465	1465	and phrases used in this paragraph shall have the meaning respectively
1466	1466	ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
1467	1467	amendments thereto, and the provisions of such sections are hereby
1468	1468	incorporated by reference for all purposes thereof.
1469	1469	(xvi) For all taxable years beginning after December 31, 2004,
1470	1470	amounts received by taxpayers who are or were members of the armed
1471	1471	forces of the United States, including service in the Kansas army and air
1472	1472	national guard, as a recruitment, sign up or retention bonus received by
1473	1473	such taxpayer as an incentive to join, enlist or remain in the armed services
1474	1474	of the United States, including service in the Kansas army and air national
1475	1475	guard, and amounts received for repayment of educational or student loans
1476	1476	incurred by or obligated to such taxpayer and received by such taxpayer as
1477	1477	a result of such taxpayer's service in the armed forces of the United States,
1478	1478	including service in the Kansas army and air national guard.
1479	1479	(xvii) For all taxable years beginning after December 31, 2004,
1480	1480	amounts received by taxpayers who are eligible members of the Kansas
1481	1481	army and air national guard as a reimbursement pursuant to K.S.A. 48-
1482	1482	281, and amendments thereto, and amounts received for death benefits
1483	1483	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
1484	1484	such death benefits are included in federal adjusted gross income of the
1485	1485	taxpayer.
1486	1486	(xviii) For the taxable year beginning after December 31, 2006,
1487	1487	amounts received as benefits under the federal social security act which
1488	1488	are included in federal adjusted gross income of a taxpayer with federal
1489	1489	adjusted gross income of $50,000 or less, whether such taxpayer's filing
1490	1490	status is single, head of household, married filing separate or married filing
1491	1491	jointly; and for all taxable years beginning after December 31, 2007,
1492	1492	amounts received as benefits under the federal social security act which
1493	1493	are included in federal adjusted gross income of a taxpayer with federal
1494	1494	adjusted gross income of $75,000 or less, whether such taxpayer's filing
1495	1495	1
1496	1496	2
1497	1497	3
1498	1498	4
1499	1499	5
1500	1500	6
1501	1501	7
1502	1502	8
1503	1503	9
1504	1504	10
1505	1505	11
1506	1506	12
1507	1507	13
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1509	1509	15
1510	1510	16
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1513	1513	19
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1525	1525	31
1526	1526	32
1527	1527	33
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1529	1529	35
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1531	1531	37
1532	1532	38
1533	1533	39
1534	1534	40
1535	1535	41
1536	1536	42
1537	1537	43 SB 206 19
1538	1538	status is single, head of household, married filing separate or married filing
1539	1539	jointly.
1540	1540	(xix) Amounts received by retired employees of Washburn university
1541	1541	as retirement and pension benefits under the university's retirement plan.
1542	1542	(xx) For taxable years beginning after December 31, 2012, and
1543	1543	ending before January 1, 2017, the amount of any: (1) Net profit from
1544	1544	business as determined under the federal internal revenue code and
1545	1545	reported from schedule C and on line 12 of the taxpayer's form 1040
1546	1546	federal individual income tax return; (2) net income, not including
1547	1547	guaranteed payments as defined in section 707(c) of the federal internal
1548	1548	revenue code and as reported to the taxpayer from federal schedule K-1,
1549	1549	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
1550	1550	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
1551	1551	partnerships, S corporations, estates, trusts, residual interest in real estate
1552	1552	mortgage investment conduits and net farm rental as determined under the
1553	1553	federal internal revenue code and reported from schedule E and on line 17
1554	1554	of the taxpayer's form 1040 federal individual income tax return; and (3)
1555	1555	net farm profit as determined under the federal internal revenue code and
1556	1556	reported from schedule F and on line 18 of the taxpayer's form 1040
1557	1557	federal income tax return; all to the extent included in the taxpayer's
1558	1558	federal adjusted gross income. For purposes of this subsection, references
1559	1559	to the federal form 1040 and federal schedule C, schedule E, and schedule
1560	1560	F, shall be to such form and schedules as they existed for tax year 2011
1561	1561	and as revised thereafter by the internal revenue service.
1562	1562	(xxi) For all taxable years beginning after December 31, 2013,
1563	1563	amounts equal to the unreimbursed travel, lodging and medical
1564	1564	expenditures directly incurred by a taxpayer while living, or a dependent
1565	1565	of the taxpayer while living, for the donation of one or more human organs
1566	1566	of the taxpayer, or a dependent of the taxpayer, to another person for
1567	1567	human organ transplantation. The expenses may be claimed as a
1568	1568	subtraction modification provided for in this section to the extent the
1569	1569	expenses are not already subtracted from the taxpayer's federal adjusted
1570	1570	gross income. In no circumstances shall the subtraction modification
1571	1571	provided for in this section for any individual, or a dependent, exceed
1572	1572	$5,000. As used in this section, "human organ" means all or part of a liver,
1573	1573	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
1574	1574	paragraph shall take effect on the day the secretary of revenue certifies to
1575	1575	the director of the budget that the cost for the department of revenue of
1576	1576	modifications to the automated tax system for the purpose of
1577	1577	implementing this paragraph will not exceed $20,000.
1578	1578	(xxii) For taxable years beginning after December 31, 2012, and
1579	1579	ending before January 1, 2017, the amount of net gain from the sale of: (1)
1580	1580	Cattle and horses, regardless of age, held by the taxpayer for draft,
1581	1581	1
1582	1582	2
1583	1583	3
1584	1584	4
1585	1585	5
1586	1586	6
1587	1587	7
1588	1588	8
1589	1589	9
1590	1590	10
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1600	1600	20
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1619	1619	39
1620	1620	40
1621	1621	41
1622	1622	42
1623	1623	43 SB 206 20
1624	1624	breeding, dairy or sporting purposes, and held by such taxpayer for 24
1625	1625	months or more from the date of acquisition; and (2) other livestock,
1626	1626	regardless of age, held by the taxpayer for draft, breeding, dairy or
1627	1627	sporting purposes, and held by such taxpayer for 12 months or more from
1628	1628	the date of acquisition. The subtraction from federal adjusted gross income
1629	1629	shall be limited to the amount of the additions recognized under the
1630	1630	provisions of subsection (b)(xix) attributable to the business in which the
1631	1631	livestock sold had been used. As used in this paragraph, the term
1632	1632	"livestock" shall not include poultry.
1633	1633	(xxiii) For all taxable years beginning after December 31, 2012,
1634	1634	amounts received under either the Overland Park, Kansas police
1635	1635	department retirement plan or the Overland Park, Kansas fire department
1636	1636	retirement plan, both as established by the city of Overland Park, pursuant
1637	1637	to the city's home rule authority.
1638	1638	(xxiv) For taxable years beginning after December 31, 2013, and
1639	1639	ending before January 1, 2017, the net gain from the sale from Christmas
1640	1640	trees grown in Kansas and held by the taxpayer for six years or more.
1641	1641	(xxv) For all taxable years commencing after December 31, 2020,
1642	1642	100% of global intangible low-taxed income under section 951A of the
1643	1643	federal internal revenue code of 1986, before any deductions allowed
1644	1644	under section 250(a)(1)(B) of such code.
1645	1645	(xxvi) For all taxable years commencing after December 31, 2020,
1646	1646	the amount disallowed as a deduction pursuant to section 163(j) of the
1647	1647	federal internal revenue code of 1986, as in effect on January 1, 2018.
1648	1648	(xxvii) For taxable years commencing after December 31, 2020, the
1649	1649	amount disallowed as a deduction pursuant to section 274 of the federal
1650	1650	internal revenue code of 1986 for meal expenditures shall be allowed to
1651	1651	the extent such expense was deductible for determining federal income tax
1652	1652	and was allowed and in effect on December 31, 2017.
1653	1653	(xxviii) For all taxable years beginning after December 31, 2021: (1)
1654	1654	The amount contributed to a first-time home buyer savings account
1655	1655	pursuant to K.S.A. 2022 Supp. 58-4903, and amendments thereto, in an
1656	1656	amount not to exceed $3,000 for an individual or $6,000 for a married
1657	1657	couple filing a joint return; or (2) amounts received as income earned from
1658	1658	assets in a first-time home buyer savings account.
1659	1659	(d) There shall be added to or subtracted from federal adjusted gross
1660	1660	income the taxpayer's share, as beneficiary of an estate or trust, of the
1661	1661	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
1662	1662	amendments thereto.
1663	1663	(e) The amount of modifications required to be made under this
1664	1664	section by a partner which relates to items of income, gain, loss, deduction
1665	1665	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
1666	1666	amendments thereto, to the extent that such items affect federal adjusted
1667	1667	1
1668	1668	2
1669	1669	3
1670	1670	4
1671	1671	5
1672	1672	6
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1705	1705	39
1706	1706	40
1707	1707	41
1708	1708	42
1709	1709	43 SB 206 21
1710	1710	gross income of the partner.
1711	1711	(f) No taxpayer shall be assessed penalties and interest from the
1712	1712	underpayment of taxes due to changes to this section that became law on
1713	1713	July 1, 2017, so long as such underpayment is rectified on or before April
1714	1714	17, 2018.
1715	1715	Sec. 10. K.S.A. 2022 Supp. 79-32,138 is hereby amended to read as
1716	1716	follows: 79-32,138. (a) Kansas taxable income of a corporation taxable
1717	1717	under this act shall be the corporation's federal taxable income for the
1718	1718	taxable year with the modifications specified in this section, except that in
1719	1719	determination of such federal taxable income for all taxable years
1720	1720	commencing after December 31, 2020, section 118 of the federal internal
1721	1721	revenue code of 1986 shall be applied as in effect on December 21, 2017.
1722	1722	(b) There shall be added to federal taxable income:
1723	1723	(i) The same modifications as are set forth in K.S.A. 79-32,117(b),
1724	1724	and amendments thereto, with respect to resident individuals, except
1725	1725	subsections (b)(xix), (b)(xx), (b)(xxi), (b)(xxii) and (b)(xxiii);
1726	1726	(ii) the amount of all depreciation deductions claimed for any
1727	1727	property upon which the deduction allowed by K.S.A. 79-32,221, 79-
1728	1728	32,227, 79-32,232, 79-32,237, 79-32,249, 79-32,250, 79-32,255 or 79-
1729	1729	32,256, and amendments thereto, is claimed;
1730	1730	(iii) the amount of any charitable contribution deduction claimed for
1731	1731	any contribution or gift to or for the use of any racially segregated
1732	1732	educational institution;
1733	1733	(iv) for taxable years commencing December 31, 2013, that portion
1734	1734	of the amount of any expenditure deduction claimed in determining federal
1735	1735	adjusted gross income for expenses paid by a taxpayer for health care
1736	1736	when such expenses were paid or incurred for abortion coverage, a health
1737	1737	benefit plan, as defined in K.S.A. 65-6731, and amendments thereto, when
1738	1738	such expenses were paid or incurred for abortion coverage or amounts
1739	1739	contributed to health savings accounts for such taxpayer's employees for
1740	1740	the purchase of an optional rider for coverage of abortion in accordance
1741	1741	with K.S.A. 40-2,190, and amendments thereto;
1742	1742	(v) the amount of any charitable contribution deduction claimed for
1743	1743	any contribution or gift made to a scholarship granting organization to the
1744	1744	extent the same is claimed as the basis for the credit allowed pursuant to
1745	1745	K.S.A. 72-4357, and amendments thereto;
1746	1746	(vi)(v) the federal net operating loss deduction; and
1747	1747	(vii)(vi) for all taxable years commencing after December 31, 2020,
1748	1748	the amount of any deduction claimed under section 250(a)(1)(B) of the
1749	1749	federal internal revenue code of 1986.
1750	1750	(c) There shall be subtracted from federal taxable income:
1751	1751	(i) The same modifications as are set forth in K.S.A. 79-32,117(c),
1752	1752	and amendments thereto, with respect to resident individuals, except
1753	1753	1
1754	1754	2
1755	1755	3
1756	1756	4
1757	1757	5
1758	1758	6
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1783	1783	31
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1792	1792	40
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1795	1795	43 SB 206 22
1796	1796	subsection (c)(xx);
1797	1797	(ii) the federal income tax liability for any taxable year commencing
1798	1798	prior to December 31, 1971, for which a Kansas return was filed after
1799	1799	reduction for all credits thereon, except credits for payments on estimates
1800	1800	of federal income tax, credits for gasoline and lubricating oil tax, and for
1801	1801	foreign tax credits if, on the Kansas income tax return for such prior year,
1802	1802	the federal income tax deduction was computed on the basis of the federal
1803	1803	income tax paid in such prior year, rather than as accrued. Notwithstanding
1804	1804	the foregoing, the deduction for federal income tax liability for any year
1805	1805	shall not exceed that portion of the total federal income tax liability for
1806	1806	such year which bears the same ratio to the total federal income tax
1807	1807	liability for such year as the Kansas taxable income, as computed before
1808	1808	any deductions for federal income taxes and after application of
1809	1809	subsections (d) and (e) as existing for such year, bears to the federal
1810	1810	taxable income for the same year;
1811	1811	(iii) an amount for the amortization deduction allowed pursuant to
1812	1812	K.S.A. 79-32,221, 79-32,227, 79-32,232, 79-32,237, 79-32,249, 79-
1813	1813	32,250, 79-32,255 or 79-32,256, and amendments thereto;
1814	1814	(iv) for all taxable years commencing after December 31, 1987, the
1815	1815	amount included in federal taxable income pursuant to the provisions of
1816	1816	section 78 of the internal revenue code;
1817	1817	(v) 80% of dividends from corporations incorporated outside of the
1818	1818	United States or the District of Columbia which are included in federal
1819	1819	taxable income. As used in this paragraph, "dividends" includes amounts
1820	1820	included in income under section 965 of the federal internal revenue code
1821	1821	of 1986, net of the deduction permitted by section 965(c) of the federal
1822	1822	internal revenue code of 1986. For all taxable years commencing after
1823	1823	December 31, 2020, this paragraph does not apply to amounts excluded
1824	1824	from income pursuant to K.S.A. 79-32,117(c)(xxv), and amendments
1825	1825	thereto, or amounts added back pursuant to K.S.A. 79-32,138(b)(vii), and
1826	1826	amendments thereto; and
1827	1827	(vi) for all taxable years commencing after December 31, 2020, the
1828	1828	amount disallowed as a deduction pursuant to section 162(r) of the federal
1829	1829	internal revenue code of 1986, as in effect on January 1, 2018.
1830	1830	(d) If any corporation derives all of its income from sources within
1831	1831	Kansas in any taxable year commencing after December 31, 1979, its
1832	1832	Kansas taxable income shall be the sum resulting after application of
1833	1833	subsections (a) through (c). Otherwise, such corporation's Kansas taxable
1834	1834	income in any such taxable year, after excluding any refunds of federal
1835	1835	income tax and before the deduction of federal income taxes provided by
1836	1836	subsection (c)(ii) shall be allocated as provided in K.S.A. 79-3271 through
1837	1837	79-3293, and amendments thereto, plus any refund of federal income tax
1838	1838	as determined under K.S.A. 79-32,117(b)(iv), and amendments thereto,
1839	1839	1
1840	1840	2
1841	1841	3
1842	1842	4
1843	1843	5
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1879	1879	41
1880	1880	42
1881	1881	43 SB 206 23
1882	1882	and minus the deduction for federal income taxes as provided by
1883	1883	subsection (c)(ii) shall be such corporation's Kansas taxable income.
1884	1884	(e) A corporation may make an election with respect to its first
1885	1885	taxable year commencing after December 31, 1982, whereby no addition
1886	1886	modifications as provided for in subsection (b)(ii) and subtraction
1887	1887	modifications as provided for in subsection (c)(iii) as those subsections
1888	1888	existed prior to their amendment by this act, shall be required to be made
1889	1889	for such taxable year.
1890	1890	Sec. 11. K.S.A. 2022 Supp. 79-32,182b is hereby amended to read as
1891	1891	follows: 79-32,182b. (a) For all taxable years commencing after December
1892	1892	31, 2022, a credit shall be allowed against the tax imposed by the Kansas
1893	1893	income tax act on the Kansas taxable income of a taxpayer for
1894	1894	expenditures in research and development activities conducted within this
1895	1895	state in an amount equal to 10% of the amount by which the amount
1896	1896	expended for such activities in the taxable year of the taxpayer exceeds the
1897	1897	taxpayer's average of the actual expenditures for such purposes made in
1898	1898	such taxable year and the next preceding two taxable years.
1899	1899	(b) In any one taxable year, the amount of such credit allowable for
1900	1900	deduction from the taxpayer's tax liability shall not exceed 25% of the total
1901	1901	amount of such credit plus any applicable carry forward amount. The
1902	1902	amount by which that portion of the credit allowed by subsections (a) and
1903	1903	(b) to be claimed in any one taxable year exceeds the taxpayer's tax
1904	1904	liability in such year may be carried forward until the total amount of the
1905	1905	credit is used.
1906	1906	(c) As used in this section, the term "expenditures in research and
1907	1907	development activities" means expenditures made for such purposes, other
1908	1908	than expenditures of moneys made available to the taxpayer pursuant to
1909	1909	federal or state law, which that are treated as expenses allowable for
1910	1910	deduction under the provisions of the federal internal revenue code of
1911	1911	1986, as amended, except that for taxable years commencing after
1912	1912	December 31, 2013, expenditures in research and development activities
1913	1913	shall not include any expenditures for the performance of any abortion, as
1914	1914	defined in K.S.A. 65-6701, and amendments thereto.
1915	1915	(d) For tax year 2023 and all tax years thereafter, the income tax
1916	1916	credit allowed pursuant to this section shall be transferable by a taxpayer
1917	1917	without a current tax liability. The tax credit may be transferred to any
1918	1918	person and be claimed by the transferee as a credit against the transferee's
1919	1919	Kansas income tax liability in the tax year when it was transferred. The
1920	1920	credit shall be claimed and may be carried forward by the transferee as
1921	1921	provided and limited by subsection (b). No person shall be entitled to a
1922	1922	refund for the transferred tax credit. Only the full credit may be
1923	1923	transferred, and the credit may only be transferred one time.
1924	1924	Documentation of any credit acquired by transfer shall be provided by the
1925	1925	1
1926	1926	2
1927	1927	3
1928	1928	4
1929	1929	5
1930	1930	6
1931	1931	7
1932	1932	8
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1967	1967	43 SB 206 24
1968	1968	taxpayer or the transferee in the manner required by the secretary of
1969	1969	revenue.
1970	1970	Sec. 12. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
1971	1971	32,195. As used in this act, the following words and phrases shall have the
1972	1972	meanings ascribed to them herein: (a) "Business firm" means any business
1973	1973	entity authorized to do business in the state of Kansas which is subject to
1974	1974	the state income tax imposed by the provisions of the Kansas income tax
1975	1975	act, any individual subject to the state income tax imposed by the
1976	1976	provisions of the Kansas income tax act, any national banking association,
1977	1977	state bank, trust company or savings and loan association paying an annual
1978	1978	tax on its net income pursuant to article 11 of chapter 79 of the Kansas
1979	1979	Statutes Annotated, and amendments thereto, or any insurance company
1980	1980	paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
1981	1981	252, and amendments thereto;
1982	1982	(b) "Community services" means:
1983	1983	(1) The conduct of activities which meet a demonstrated community
1984	1984	need and which are designed to achieve improved educational and social
1985	1985	services for Kansas children and their families, and which are coordinated
1986	1986	with communities including, but not limited to, social and human services
1987	1987	organizations that address the causes of poverty through programs and
1988	1988	services that assist low income persons in the areas of employment, food,
1989	1989	housing, emergency assistance and health care;
1990	1990	(2) crime prevention;
1991	1991	(3) health care services; and
1992	1992	(4) youth apprenticeship and technical training.
1993	1993	(c) "Crime prevention" means any nongovernmental activity which
1994	1994	aids in the prevention of crime.
1995	1995	(d) "Youth apprenticeship and technical training" means conduct of
1996	1996	activities which are designed to improve the access to and quality of
1997	1997	apprenticeship and technical training which support an emphasis on rural
1998	1998	construction projects as well as the necessary equipment, facilities and
1999	1999	supportive mentorship for youth apprenticeships and technical training.
2000	2000	(e) "Community service organization" means any organization
2001	2001	performing community services in Kansas and which:
2002	2002	(1) Has obtained a ruling from the internal revenue service of the
2003	2003	United States department of the treasury that such organization is exempt
2004	2004	from income taxation under the provisions of section 501(c)(3) of the
2005	2005	federal internal revenue code; or
2006	2006	(2) is incorporated in the state of Kansas or another state as a
2007	2007	nonstock, nonprofit corporation; or
2008	2008	(3) has been designated as a community development corporation by
2009	2009	the United States government under the provisions of title VII of the
2010	2010	economic opportunity act of 1964; or
2011	2011	1
2012	2012	2
2013	2013	3
2014	2014	4
2015	2015	5
2016	2016	6
2017	2017	7
2018	2018	8
2019	2019	9
2020	2020	10
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2053	2053	43 SB 206 25
2054	2054	(4) is chartered by the United States congress.
2055	2055	(f) "Contributions" shall mean and include the donation of cash,
2056	2056	services or property other than used clothing in an amount or value of
2057	2057	$250 or more. Stocks and bonds contributed shall be valued at the stock
2058	2058	market price on the date of transfer. Services contributed shall be valued at
2059	2059	the standard billing rate for not-for-profit clients. Personal property items
2060	2060	contributed shall be valued at the lesser of its fair market value or cost to
2061	2061	the donor and may be inclusive of costs incurred in making the
2062	2062	contribution, but shall not include sales tax. Contributions of real estate are
2063	2063	allowable for credit only when title thereto is in fee simple absolute and is
2064	2064	clear of any encumbrances. The amount of credit allowable shall be based
2065	2065	upon the lesser of two current independent appraisals conducted by state
2066	2066	licensed appraisers.
2067	2067	(g) "Health care services" shall include, but not be limited to, the
2068	2068	following: Services provided by local health departments, city, county or
2069	2069	district hospitals, city or county nursing homes, or other residential
2070	2070	institutions, preventive health care services offered by a community
2071	2071	service organization including immunizations, prenatal care, the
2072	2072	postponement of entry into nursing homes by home health care services,
2073	2073	and community based services for persons with a disability, mental health
2074	2074	services, indigent health care, physician or health care worker recruitment,
2075	2075	health education, emergency medical services, services provided by rural
2076	2076	health clinics, integration of health care services, home health services and
2077	2077	services provided by rural health networks, except that for taxable years
2078	2078	commencing after December 31, 2013, health care services shall not
2079	2079	include any service involving the performance of any abortion, as defined
2080	2080	in K.S.A. 65-6701, and amendments thereto.
2081	2081	(h) "Rural community" means any city having a population of fewer
2082	2082	than 15,000 located in a county that is not part of a standard metropolitan
2083	2083	statistical area as defined by the United States department of commerce or
2084	2084	its successor agency. However, any such city located in a county defined
2085	2085	as a standard metropolitan statistical area shall be deemed a rural
2086	2086	community if a substantial number of persons in such county derive their
2087	2087	income from agriculture and, in any county where there is only one city
2088	2088	within the county which has a population of more than 15,000 and which
2089	2089	classifies as a standard metropolitan statistical area, all other cities in that
2090	2090	county having a population of less than 15,000 shall be deemed a rural
2091	2091	community.
2092	2092	Sec. 13. K.S.A. 2022 Supp. 79-32,261 is hereby amended to read as
2093	2093	follows: 79-32,261. (a) (1) On and after July 1, 2008, any taxpayer who
2094	2094	contributes in the manner prescribed by this paragraph to a community
2095	2095	college located in Kansas for capital improvements, to a technical college
2096	2096	for deferred maintenance or the purchase of technology or equipment or to
2097	2097	1
2098	2098	2
2099	2099	3
2100	2100	4
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2139	2139	43 SB 206 26
2140	2140	a postsecondary educational institution located in Kansas for deferred
2141	2141	maintenance, shall be allowed a credit against the tax imposed by the
2142	2142	Kansas income tax act, the premium tax or privilege fees imposed
2143	2143	pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
2144	2144	measured by net income of financial institutions imposed pursuant to
2145	2145	article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
2146	2146	thereto. The tax credit allowed by this paragraph is applicable for the tax
2147	2147	year 2008 for any contributions made on and after July 1, 2008, and for the
2148	2148	tax years 2009, 2010, 2011 and 2012 for any contributions made during
2149	2149	the entire tax year. The amount of the credit allowed by this paragraph
2150	2150	shall not exceed 60% of the total amount contributed during the taxable
2151	2151	year by the taxpayer to a community college or a technical college located
2152	2152	in Kansas for such purposes. The amount of the credit allowed by this
2153	2153	paragraph shall not exceed 50% of the total amount contributed during the
2154	2154	taxable year by the taxpayer to a postsecondary educational institution for
2155	2155	such purposes. If the amount of the credit allowed by this paragraph for a
2156	2156	taxpayer who contributes to a community college or a technical college
2157	2157	exceeds the taxpayer's income tax liability imposed by the Kansas income
2158	2158	tax act, such excess amount shall be refunded to the taxpayer. If the
2159	2159	amount of the tax credit for a taxpayer who contributes to a postsecondary
2160	2160	educational institution exceeds the taxpayer's income tax liability for the
2161	2161	taxable year, the amount which exceeds the tax liability may be carried
2162	2162	over for deduction from the taxpayer's income tax liability in the next
2163	2163	succeeding taxable year or years until the total amount of the tax credit has
2164	2164	been deducted from tax liability, except that no such tax credit shall be
2165	2165	carried over for deduction after the third taxable year succeeding the
2166	2166	taxable year in which the contribution is made. Prior to the issuance of any
2167	2167	tax credits pursuant to this paragraph, the structure of the process in which
2168	2168	contributions received by a community college, a technical college or a
2169	2169	postsecondary educational institution qualify as tax credits allowed and
2170	2170	issued pursuant to this paragraph shall be developed by a community
2171	2171	college, a technical college and a postsecondary educational institution in
2172	2172	consultation with the secretary of revenue and the foundation or
2173	2173	endowment association of any such community college, technical college
2174	2174	or postsecondary educational institution in a manner that complies with
2175	2175	requirements specified in the federal internal revenue code of 1986, as
2176	2176	amended, so that contributions qualify as charitable contributions
2177	2177	allowable as deductions from federal adjusted gross income.
2178	2178	(2) On and after July 1, 2022, any taxpayer who contributes in the
2179	2179	manner prescribed by this paragraph to a community college or technical
2180	2180	college located in Kansas for capital improvements, deferred maintenance
2181	2181	or the purchase of technology or equipment shall be allowed a credit
2182	2182	against the tax imposed by the Kansas income tax act, the premium tax or
2183	2183	1
2184	2184	2
2185	2185	3
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2187	2187	5
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2226	2226	privilege fees imposed pursuant to K.S.A. 40-252, and amendments
2227	2227	thereto, or the privilege tax as measured by net income of financial
2228	2228	institutions imposed pursuant to article 11 of chapter 79 of the Kansas
2229	2229	Statutes Annotated, and amendments thereto. The tax credit allowed by
2230	2230	this paragraph is applicable for the tax year 2022 for any contributions
2231	2231	made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
2232	2232	2026 for any contributions made during the entire tax year. The amount of
2233	2233	the credit allowed by this paragraph shall equal 60% of the total amount
2234	2234	contributed during the taxable year by the taxpayer to a community college
2235	2235	or a technical college located in Kansas for such purposes. Prior to the
2236	2236	issuance of any tax credits pursuant to this paragraph, the structure of the
2237	2237	process in which contributions received by a community college or
2238	2238	technical college qualify as tax credits allowed and issued pursuant to this
2239	2239	paragraph shall be developed by a community college and technical
2240	2240	college in consultation with the secretary of revenue and the foundation or
2241	2241	endowment association of any such community college or technical
2242	2242	college in a manner that complies with requirements specified in the
2243	2243	federal internal revenue code of 1986, as amended, so that contributions
2244	2244	qualify as charitable contributions allowable as deductions from federal
2245	2245	adjusted gross income.
2246	2246	(b) (1) Upon receipt of any contributions to a community college
2247	2247	made pursuant to the provisions of subsection (a)(1), the treasurer of the
2248	2248	community college shall deposit such contributions to the credit of the
2249	2249	capital outlay fund of such community college established as provided by
2250	2250	K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
2251	2251	shall be made for the purposes described in K.S.A. 71-501(a), and
2252	2252	amendments thereto, except that expenditures shall not be made from such
2253	2253	fund for new construction or the acquisition of real property for use as
2254	2254	building sites or for educational programs.
2255	2255	(2) Upon receipt of any contributions to a technical college made
2256	2256	pursuant to the provisions of subsection (a)(1), such contributions shall be
2257	2257	deposited to the credit of a deferred maintenance fund or a technology and
2258	2258	equipment fund established by the technical college which received the
2259	2259	contribution. Expenditures from such fund shall be made only for the
2260	2260	purpose as provided in subsection (b)(1).
2261	2261	(3) Upon receipt of any such contributions to a postsecondary
2262	2262	educational institution made pursuant to the provisions of subsection (a)
2263	2263	(1), such contributions shall be deposited to the credit of the appropriate
2264	2264	deferred maintenance support fund of the postsecondary educational
2265	2265	institution that received the contribution. Expenditures from such fund
2266	2266	shall be made only for the purposes designated for such fund pursuant to
2267	2267	law.
2268	2268	(4) Upon receipt of any such contributions to a community college or
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2312	2312	technical college made pursuant to the provisions of subsection (a)(2), the
2313	2313	treasurer of the community college or technical college shall deposit such
2314	2314	contributions to the credit of the capital outlay fund of such community
2315	2315	college or technical college established as provided by K.S.A. 71-501a,
2316	2316	and amendments thereto. Expenditures from such fund shall be made for
2317	2317	the purposes designated for such fund pursuant to law.
2318	2318	(c) (1) In no event shall the total amount of credits allowed under
2319	2319	subsection (a)(1) for taxpayers who contribute to any one such community
2320	2320	college or technical college exceed the following amounts: For the tax year
2321	2321	2008, an amount not to exceed $78,125; for the tax year 2009, an amount
2322	2322	not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
2323	2323	amount not to exceed $208,233.33.
2324	2324	(2) In no event shall the total of credits allowed under subsection (a)
2325	2325	(1) for taxpayers who contribute to postsecondary educational institutions
2326	2326	exceed the following amounts: For the tax year 2008, an amount not to
2327	2327	exceed $5,625,000; for the tax year 2009, an amount not to exceed
2328	2328	$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
2329	2329	exceed $15,000,000. Except as otherwise provided, the allocation of such
2330	2330	tax credits for each individual state educational institution shall be
2331	2331	determined by the state board of regents in consultation with the secretary
2332	2332	of revenue and the university foundation or endowment association of
2333	2333	each postsecondary educational institution, and such determination shall
2334	2334	be completed prior to the issuance of any tax credits pursuant to subsection
2335	2335	(a)(1). Not more than 40% of the total of credits allowed under subsection
2336	2336	(a)(1) shall be allocated to any one postsecondary educational institution
2337	2337	unless all such postsecondary educational institutions approve an
2338	2338	allocation to any one such postsecondary educational institution which
2339	2339	exceeds 40% of the total of such credits allowed under subsection (a)(1).
2340	2340	(3) For the tax years 2022 through 2026, the amount of such credit
2341	2341	awarded under subsection (a)(2) for each taxpayer shall not exceed
2342	2342	$250,000 per tax year.
2343	2343	(4) In no event shall the total of credits allowed under subsection (a)
2344	2344	(2) for contributions to any one community college or technical college
2345	2345	exceed $500,000 per tax year.
2346	2346	(5) In no event shall the total of credits allowed under subsection (a)
2347	2347	(2) exceed $5,000,000 for each tax year that the credit remains in effect.
2348	2348	(d) As used in this section: (1) "Community college" means a
2349	2349	community college established under the provisions of the community
2350	2350	college act;
2351	2351	(2) "deferred maintenance" means the maintenance, repair,
2352	2352	reconstruction or rehabilitation of a building located at a technical college
2353	2353	or a postsecondary educational institution which has been deferred, any
2354	2354	utility systems relating to such building, any life-safety upgrades to such
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2398	2398	building and any improvements necessary to be made to such building in
2399	2399	order to comply with the requirements of the Americans with disabilities
2400	2400	act or other federal or state law, except that for taxable years commencing
2401	2401	after December 31, 2013, deferred maintenance shall not include any
2402	2402	maintenance, repair, reconstruction or rehabilitation of any building in
2403	2403	which any abortion, as defined in K.S.A. 65-6701, and amendments
2404	2404	thereto, is performed;
2405	2405	(3) "postsecondary educational institution" means the university of
2406	2406	Kansas, Kansas state university of agriculture and applied science, Wichita
2407	2407	state university, Emporia state university, Pittsburg state university, Fort
2408	2408	Hays state university and Washburn university of Topeka; and
2409	2409	(4) "technical college" means a technical college as designated
2410	2410	pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
2411	2411	32,464 and 74-32,465, and amendments thereto, and the institute of
2412	2412	technology at Washburn university.
2413	2413	(e) (1) Any taxpayer not subject to Kansas income, privilege or
2414	2414	premiums tax who contributes to a community college, technical college
2415	2415	or postsecondary educational institution, hereinafter designated the
2416	2416	transferor, may sell, assign, convey or otherwise transfer tax credits
2417	2417	allowed and earned pursuant to this section. The sale price of a tax credit
2418	2418	shall be at least 50% of the full value of the credit. Such credit shall be
2419	2419	deemed to be allowed and earned by any such taxpayer which is only
2420	2420	disqualified therefrom by reason of not being subject to such Kansas taxes.
2421	2421	The taxpayer acquiring earned credits, hereinafter designated the
2422	2422	transferee, may use the amount of the acquired credits to offset up to 100%
2423	2423	of the taxpayer's income, privilege or premiums tax liability for the taxable
2424	2424	year in which such acquisition was made. Such credits may be sold or
2425	2425	transferred only one time and, if sold or transferred, shall be transferred in
2426	2426	the tax year such credit is earned or the two successive tax years. A
2427	2427	transferred credit shall be claimed in the year purchased. The transferor
2428	2428	shall enter into a written agreement with the transferee establishing the
2429	2429	terms and conditions of the sale or transfer and shall perfect such transfer
2430	2430	by notifying the secretary of revenue in writing within 30 calendar days
2431	2431	following the effective date of the transfer, subject to the review and
2432	2432	approval or denial of such transfer by the secretary of revenue. The
2433	2433	transferor and transferee shall provide any information pertaining to the
2434	2434	sale or transfer as may be required by the secretary of revenue to
2435	2435	administer and carry out the provisions of this section. The amount
2436	2436	received by the transferor of such tax credit shall be taxable as income of
2437	2437	the transferor, and the excess of the value of such credit over the amount
2438	2438	paid by the transferee for such credit shall be taxable as income of the
2439	2439	transferee.
2440	2440	(2) The provisions of this subsection shall not apply to tax credits
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2484	2484	earned pursuant to subsection (a)(2).
2485	2485	(f) The secretary of revenue shall submit an annual report to the
2486	2486	legislature to assist the legislature in the evaluation of the utilization of any
2487	2487	credits claimed pursuant to this act, including information specific as to
2488	2488	each community college, technical college or postsecondary educational
2489	2489	institution. Such report shall be due on or before the first day of the
2490	2490	legislative session following the tax year in which the credits were
2491	2491	claimed.
2492	2492	(g) The secretary of revenue shall adopt rules and regulations
2493	2493	necessary to administer the provisions of this section.
2494	2494	Sec. 14. K.S.A. 40-2,103, 40-2,190, 40-2,191, 40-19c09, 40-2246,
2495	2495	65-6709, 65-6722, 65-6723, 65-6724, 65-6725, 65-6733, 65-6734, 65-
2496	2496	6737, 76-3308 and 79-32,195 and K.S.A. 2022 Supp. 79-32,117, 79-
2497	2497	32,138, 79-32,182b and 79-32,261 are hereby repealed.
2498	2498	Sec. 15. This act shall take effect and be in force from and after its
2499	2499	publication in the statute book.
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