Kansas 2023-2024 Regular Session

Kansas Senate Bill SB306 Compare Versions

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1	1	Session of 2023
2	2	SENATE BILL No. 306
3	3	By Committee on Assessment and Taxation
4	4	3-8
5	5	AN ACT concerning income taxation; relating to Kansas adjusted gross
6	6	income; providing an addition modification for losses from any
7	7	investment in a technology-enabled fiduciary financial institution;
8	8	amending K.S.A. 2022 Supp. 79-32,117 and repealing the existing
9	9	section.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	Section 1. K.S.A. 2022 Supp. 79-32,117 is hereby amended to read as
12	12	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
13	13	means such individual's federal adjusted gross income for the taxable year,
14	14	with the modifications specified in this section.
15	15	(b) There shall be added to federal adjusted gross income:
16	16	(i) Interest income less any related expenses directly incurred in the
17	17	purchase of state or political subdivision obligations, to the extent that the
18	18	same is not included in federal adjusted gross income, on obligations of
19	19	any state or political subdivision thereof, but to the extent that interest
20	20	income on obligations of this state or a political subdivision thereof issued
21	21	prior to January 1, 1988, is specifically exempt from income tax under the
22	22	laws of this state authorizing the issuance of such obligations, it shall be
23	23	excluded from computation of Kansas adjusted gross income whether or
24	24	not included in federal adjusted gross income. Interest income on
25	25	obligations of this state or a political subdivision thereof issued after
26	26	December 31, 1987, shall be excluded from computation of Kansas
27	27	adjusted gross income whether or not included in federal adjusted gross
28	28	income.
29	29	(ii) Taxes on or measured by income or fees or payments in lieu of
30	30	income taxes imposed by this state or any other taxing jurisdiction to the
31	31	extent deductible in determining federal adjusted gross income and not
32	32	credited against federal income tax. This paragraph shall not apply to taxes
33	33	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
34	34	amendments thereto, for privilege tax year 1995, and all such years
35	35	thereafter.
36	36	(iii) The federal net operating loss deduction, except that the federal
37	37	net operating loss deduction shall not be added to an individual's federal
38	38	adjusted gross income for tax years beginning after December 31, 2016.
39	39	(iv) Federal income tax refunds received by the taxpayer if the
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76	76	deduction of the taxes being refunded resulted in a tax benefit for Kansas
77	77	income tax purposes during a prior taxable year. Such refunds shall be
78	78	included in income in the year actually received regardless of the method
79	79	of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
80	80	be deemed to have resulted if the amount of the tax had been deducted in
81	81	determining income subject to a Kansas income tax for a prior year
82	82	regardless of the rate of taxation applied in such prior year to the Kansas
83	83	taxable income, but only that portion of the refund shall be included as
84	84	bears the same proportion to the total refund received as the federal taxes
85	85	deducted in the year to which such refund is attributable bears to the total
86	86	federal income taxes paid for such year. For purposes of the foregoing
87	87	sentence, federal taxes shall be considered to have been deducted only to
88	88	the extent such deduction does not reduce Kansas taxable income below
89	89	zero.
90	90	(v) The amount of any depreciation deduction or business expense
91	91	deduction claimed on the taxpayer's federal income tax return for any
92	92	capital expenditure in making any building or facility accessible to the
93	93	handicapped, for which expenditure the taxpayer claimed the credit
94	94	allowed by K.S.A. 79-32,177, and amendments thereto.
95	95	(vi) Any amount of designated employee contributions picked up by
96	96	an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
97	97	and amendments thereto.
98	98	(vii) The amount of any charitable contribution made to the extent the
99	99	same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
100	100	32,196, and amendments thereto.
101	101	(viii) The amount of any costs incurred for improvements to a swine
102	102	facility, claimed for deduction in determining federal adjusted gross
103	103	income, to the extent the same is claimed as the basis for any credit
104	104	allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
105	105	(ix) The amount of any ad valorem taxes and assessments paid and
106	106	the amount of any costs incurred for habitat management or construction
107	107	and maintenance of improvements on real property, claimed for deduction
108	108	in determining federal adjusted gross income, to the extent the same is
109	109	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
110	110	and amendments thereto.
111	111	(x) Amounts received as nonqualified withdrawals, as defined by
112	112	K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
113	113	family postsecondary education savings account, such amounts were
114	114	subtracted from the federal adjusted gross income pursuant to K.S.A. 79-
115	115	32,117(c)(xv), and amendments thereto, or if such amounts are not already
116	116	included in the federal adjusted gross income.
117	117	(xi) The amount of any contribution made to the same extent the
118	118	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
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162	162	50,154, and amendments thereto.
163	163	(xii) For taxable years commencing after December 31, 2004,
164	164	amounts received as withdrawals not in accordance with the provisions of
165	165	K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
166	166	to an individual development account, such amounts were subtracted from
167	167	the federal adjusted gross income pursuant to subsection (c)(xiii), or if
168	168	such amounts are not already included in the federal adjusted gross
169	169	income.
170	170	(xiii) The amount of any expenditures claimed for deduction in
171	171	determining federal adjusted gross income, to the extent the same is
172	172	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
173	173	through 79-32,220 or 79-32,222, and amendments thereto.
174	174	(xiv) The amount of any amortization deduction claimed in
175	175	determining federal adjusted gross income to the extent the same is
176	176	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
177	177	thereto.
178	178	(xv) The amount of any expenditures claimed for deduction in
179	179	determining federal adjusted gross income, to the extent the same is
180	180	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
181	181	through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
182	182	32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
183	183	32,251 through 79-32,254, and amendments thereto.
184	184	(xvi) The amount of any amortization deduction claimed in
185	185	determining federal adjusted gross income to the extent the same is
186	186	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
187	187	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
188	188	(xvii) The amount of any amortization deduction claimed in
189	189	determining federal adjusted gross income to the extent the same is
190	190	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
191	191	thereto.
192	192	(xviii) For taxable years commencing after December 31, 2006, the
193	193	amount of any ad valorem or property taxes and assessments paid to a state
194	194	other than Kansas or local government located in a state other than Kansas
195	195	by a taxpayer who resides in a state other than Kansas, when the law of
196	196	such state does not allow a resident of Kansas who earns income in such
197	197	other state to claim a deduction for ad valorem or property taxes or
198	198	assessments paid to a political subdivision of the state of Kansas in
199	199	determining taxable income for income tax purposes in such other state, to
200	200	the extent that such taxes and assessments are claimed as an itemized
201	201	deduction for federal income tax purposes.
202	202	(xix) For taxable years beginning after December 31, 2012, and
203	203	ending before January 1, 2017, the amount of any: (1) Loss from business
204	204	as determined under the federal internal revenue code and reported from
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248	248	schedule C and on line 12 of the taxpayer's form 1040 federal individual
249	249	income tax return; (2) loss from rental real estate, royalties, partnerships, S
250	250	corporations, except those with wholly owned subsidiaries subject to the
251	251	Kansas privilege tax, estates, trusts, residual interest in real estate
252	252	mortgage investment conduits and net farm rental as determined under the
253	253	federal internal revenue code and reported from schedule E and on line 17
254	254	of the taxpayer's form 1040 federal individual income tax return; and (3)
255	255	farm loss as determined under the federal internal revenue code and
256	256	reported from schedule F and on line 18 of the taxpayer's form 1040
257	257	federal income tax return; all to the extent deducted or subtracted in
258	258	determining the taxpayer's federal adjusted gross income. For purposes of
259	259	this subsection, references to the federal form 1040 and federal schedule
260	260	C, schedule E, and schedule F, shall be to such form and schedules as they
261	261	existed for tax year 2011, and as revised thereafter by the internal revenue
262	262	service.
263	263	(xx) For taxable years beginning after December 31, 2012, and
264	264	ending before January 1, 2017, the amount of any deduction for self-
265	265	employment taxes under section 164(f) of the federal internal revenue
266	266	code as in effect on January 1, 2012, and amendments thereto, in
267	267	determining the federal adjusted gross income of an individual taxpayer, to
268	268	the extent the deduction is attributable to income reported on schedule C,
269	269	E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
270	270	tax return.
271	271	(xxi) For taxable years beginning after December 31, 2012, and
272	272	ending before January 1, 2017, the amount of any deduction for pension,
273	273	profit sharing, and annuity plans of self-employed individuals under
274	274	section 62(a)(6) of the federal internal revenue code as in effect on January
275	275	1, 2012, and amendments thereto, in determining the federal adjusted gross
276	276	income of an individual taxpayer.
277	277	(xxii) For taxable years beginning after December 31, 2012, and
278	278	ending before January 1, 2017, the amount of any deduction for health
279	279	insurance under section 162(l) of the federal internal revenue code as in
280	280	effect on January 1, 2012, and amendments thereto, in determining the
281	281	federal adjusted gross income of an individual taxpayer.
282	282	(xxiii) For taxable years beginning after December 31, 2012, and
283	283	ending before January 1, 2017, the amount of any deduction for domestic
284	284	production activities under section 199 of the federal internal revenue code
285	285	as in effect on January 1, 2012, and amendments thereto, in determining
286	286	the federal adjusted gross income of an individual taxpayer.
287	287	(xxiv) For taxable years commencing after December 31, 2013, that
288	288	portion of the amount of any expenditure deduction claimed in
289	289	determining federal adjusted gross income for expenses paid for medical
290	290	care of the taxpayer or the taxpayer's spouse or dependents when such
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334	334	expenses were paid or incurred for an abortion, or for a health benefit plan,
335	335	as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
336	336	an optional rider for coverage of abortion in accordance with K.S.A. 40-
337	337	2,190, and amendments thereto, to the extent that such taxes and
338	338	assessments are claimed as an itemized deduction for federal income tax
339	339	purposes.
340	340	(xxv) For taxable years commencing after December 31, 2013, that
341	341	portion of the amount of any expenditure deduction claimed in
342	342	determining federal adjusted gross income for expenses paid by a taxpayer
343	343	for health care when such expenses were paid or incurred for abortion
344	344	coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
345	345	amendments thereto, when such expenses were paid or incurred for
346	346	abortion coverage or amounts contributed to health savings accounts for
347	347	such taxpayer's employees for the purchase of an optional rider for
348	348	coverage of abortion in accordance with K.S.A. 40-2,190, and
349	349	amendments thereto, to the extent that such taxes and assessments are
350	350	claimed as a deduction for federal income tax purposes.
351	351	(xxvi) For all taxable years beginning after December 31, 2016, the
352	352	amount of any charitable contribution made to the extent the same is
353	353	claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
354	354	amendments thereto, and is also claimed as an itemized deduction for
355	355	federal income tax purposes.
356	356	(xxvii) For all taxable years commencing after December 31, 2020,
357	357	the amount deducted by reason of a carryforward of disallowed business
358	358	interest pursuant to section 163(j) of the federal internal revenue code of
359	359	1986, as in effect on January 1, 2018.
360	360	(xxviii) For all taxable years beginning after December 31, 2021, the
361	361	amount of any contributions to, or earnings from, a first-time home buyer
362	362	savings account if distributions from the account were not used to pay for
363	363	expenses or transactions authorized pursuant to K.S.A. 2022 Supp. 58-
364	364	4904, and amendments thereto, or were not held for the minimum length
365	365	of time required pursuant to K.S.A. 2022 Supp. 58-4904, and amendments
366	366	thereto. Contributions to, or earnings from, such account shall also include
367	367	any amount resulting from the account holder not designating a surviving
368	368	transfer on death beneficiary pursuant to K.S.A. 2022 Supp. 58-4904(e),
369	369	and amendments thereto.
370	370	(xxix) For all taxable years beginning after December 31, 2021, any
371	371	amount reported as a loss on any applicable federal income tax return
372	372	arising from any investment, including any alternative asset investment, in
373	373	a technology-enabled fiduciary financial institution as authorized by
374	374	K.S.A. 9-2301 et seq., and amendments thereto. As used in this paragraph,
375	375	"alternative asset" and "technology-enabled fiduciary financial
376	376	institution" mean the same as defined in K.S.A. 9-2301, and amendments
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420	420	thereto.
421	421	(c) There shall be subtracted from federal adjusted gross income:
422	422	(i) Interest or dividend income on obligations or securities of any
423	423	authority, commission or instrumentality of the United States and its
424	424	possessions less any related expenses directly incurred in the purchase of
425	425	such obligations or securities, to the extent included in federal adjusted
426	426	gross income but exempt from state income taxes under the laws of the
427	427	United States.
428	428	(ii) Any amounts received which are included in federal adjusted
429	429	gross income but which are specifically exempt from Kansas income
430	430	taxation under the laws of the state of Kansas.
431	431	(iii) The portion of any gain or loss from the sale or other disposition
432	432	of property having a higher adjusted basis for Kansas income tax purposes
433	433	than for federal income tax purposes on the date such property was sold or
434	434	disposed of in a transaction in which gain or loss was recognized for
435	435	purposes of federal income tax that does not exceed such difference in
436	436	basis, but if a gain is considered a long-term capital gain for federal
437	437	income tax purposes, the modification shall be limited to that portion of
438	438	such gain which is included in federal adjusted gross income.
439	439	(iv) The amount necessary to prevent the taxation under this act of
440	440	any annuity or other amount of income or gain which was properly
441	441	included in income or gain and was taxed under the laws of this state for a
442	442	taxable year prior to the effective date of this act, as amended, to the
443	443	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
444	444	the right to receive the income or gain, or to a trust or estate from which
445	445	the taxpayer received the income or gain.
446	446	(v) The amount of any refund or credit for overpayment of taxes on
447	447	or measured by income or fees or payments in lieu of income taxes
448	448	imposed by this state, or any taxing jurisdiction, to the extent included in
449	449	gross income for federal income tax purposes.
450	450	(vi) Accumulation distributions received by a taxpayer as a
451	451	beneficiary of a trust to the extent that the same are included in federal
452	452	adjusted gross income.
453	453	(vii) Amounts received as annuities under the federal civil service
454	454	retirement system from the civil service retirement and disability fund and
455	455	other amounts received as retirement benefits in whatever form which
456	456	were earned for being employed by the federal government or for service
457	457	in the armed forces of the United States.
458	458	(viii) Amounts received by retired railroad employees as a
459	459	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
460	460	228c(a)(1) et seq.
461	461	(ix) Amounts received by retired employees of a city and by retired
462	462	employees of any board of such city as retirement allowances pursuant to
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506	506	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
507	507	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
508	508	amendments thereto.
509	509	(x) For taxable years beginning after December 31, 1976, the amount
510	510	of the federal tentative jobs tax credit disallowance under the provisions of
511	511	26 U.S.C. § 280C. For taxable years ending after December 31, 1978, the
512	512	amount of the targeted jobs tax credit and work incentive credit
513	513	disallowances under 26 U.S.C. § 280C.
514	514	(xi) For taxable years beginning after December 31, 1986, dividend
515	515	income on stock issued by Kansas venture capital, inc.
516	516	(xii) For taxable years beginning after December 31, 1989, amounts
517	517	received by retired employees of a board of public utilities as pension and
518	518	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
519	519	and amendments thereto.
520	520	(xiii) For taxable years beginning after December 31, 2004, amounts
521	521	contributed to and the amount of income earned on contributions deposited
522	522	to an individual development account under K.S.A. 74-50,201 et seq., and
523	523	amendments thereto.
524	524	(xiv) For all taxable years commencing after December 31, 1996, that
525	525	portion of any income of a bank organized under the laws of this state or
526	526	any other state, a national banking association organized under the laws of
527	527	the United States, an association organized under the savings and loan
528	528	code of this state or any other state, or a federal savings association
529	529	organized under the laws of the United States, for which an election as an
530	530	S corporation under subchapter S of the federal internal revenue code is in
531	531	effect, which accrues to the taxpayer who is a stockholder of such
532	532	corporation and which is not distributed to the stockholders as dividends of
533	533	the corporation. For taxable years beginning after December 31, 2012, and
534	534	ending before January 1, 2017, the amount of modification under this
535	535	subsection shall exclude the portion of income or loss reported on schedule
536	536	E and included on line 17 of the taxpayer's form 1040 federal individual
537	537	income tax return.
538	538	(xv) For all taxable years beginning after December 31, 2017, the
539	539	cumulative amounts not exceeding $3,000, or $6,000 for a married couple
540	540	filing a joint return, for each designated beneficiary that are contributed to:
541	541	(1) A family postsecondary education savings account established under
542	542	the Kansas postsecondary education savings program or a qualified tuition
543	543	program established and maintained by another state or agency or
544	544	instrumentality thereof pursuant to section 529 of the internal revenue
545	545	code of 1986, as amended, for the purpose of paying the qualified higher
546	546	education expenses of a designated beneficiary; or (2) an achieving a
547	547	better life experience (ABLE) account established under the Kansas ABLE
548	548	savings program or a qualified ABLE program established and maintained
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592	592	by another state or agency or instrumentality thereof pursuant to section
593	593	529A of the internal revenue code of 1986, as amended, for the purpose of
594	594	saving private funds to support an individual with a disability. The terms
595	595	and phrases used in this paragraph shall have the meaning respectively
596	596	ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
597	597	amendments thereto, and the provisions of such sections are hereby
598	598	incorporated by reference for all purposes thereof.
599	599	(xvi) For all taxable years beginning after December 31, 2004,
600	600	amounts received by taxpayers who are or were members of the armed
601	601	forces of the United States, including service in the Kansas army and air
602	602	national guard, as a recruitment, sign up or retention bonus received by
603	603	such taxpayer as an incentive to join, enlist or remain in the armed services
604	604	of the United States, including service in the Kansas army and air national
605	605	guard, and amounts received for repayment of educational or student loans
606	606	incurred by or obligated to such taxpayer and received by such taxpayer as
607	607	a result of such taxpayer's service in the armed forces of the United States,
608	608	including service in the Kansas army and air national guard.
609	609	(xvii) For all taxable years beginning after December 31, 2004,
610	610	amounts received by taxpayers who are eligible members of the Kansas
611	611	army and air national guard as a reimbursement pursuant to K.S.A. 48-
612	612	281, and amendments thereto, and amounts received for death benefits
613	613	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
614	614	such death benefits are included in federal adjusted gross income of the
615	615	taxpayer.
616	616	(xviii) For the taxable year beginning after December 31, 2006,
617	617	amounts received as benefits under the federal social security act which
618	618	are included in federal adjusted gross income of a taxpayer with federal
619	619	adjusted gross income of $50,000 or less, whether such taxpayer's filing
620	620	status is single, head of household, married filing separate or married filing
621	621	jointly; and for all taxable years beginning after December 31, 2007,
622	622	amounts received as benefits under the federal social security act which
623	623	are included in federal adjusted gross income of a taxpayer with federal
624	624	adjusted gross income of $75,000 or less, whether such taxpayer's filing
625	625	status is single, head of household, married filing separate or married filing
626	626	jointly.
627	627	(xix) Amounts received by retired employees of Washburn university
628	628	as retirement and pension benefits under the university's retirement plan.
629	629	(xx) For taxable years beginning after December 31, 2012, and
630	630	ending before January 1, 2017, the amount of any: (1) Net profit from
631	631	business as determined under the federal internal revenue code and
632	632	reported from schedule C and on line 12 of the taxpayer's form 1040
633	633	federal individual income tax return; (2) net income, not including
634	634	guaranteed payments as defined in section 707(c) of the federal internal
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678	678	revenue code and as reported to the taxpayer from federal schedule K-1,
679	679	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
680	680	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
681	681	partnerships, S corporations, estates, trusts, residual interest in real estate
682	682	mortgage investment conduits and net farm rental as determined under the
683	683	federal internal revenue code and reported from schedule E and on line 17
684	684	of the taxpayer's form 1040 federal individual income tax return; and (3)
685	685	net farm profit as determined under the federal internal revenue code and
686	686	reported from schedule F and on line 18 of the taxpayer's form 1040
687	687	federal income tax return; all to the extent included in the taxpayer's
688	688	federal adjusted gross income. For purposes of this subsection, references
689	689	to the federal form 1040 and federal schedule C, schedule E, and schedule
690	690	F, shall be to such form and schedules as they existed for tax year 2011
691	691	and as revised thereafter by the internal revenue service.
692	692	(xxi) For all taxable years beginning after December 31, 2013,
693	693	amounts equal to the unreimbursed travel, lodging and medical
694	694	expenditures directly incurred by a taxpayer while living, or a dependent
695	695	of the taxpayer while living, for the donation of one or more human organs
696	696	of the taxpayer, or a dependent of the taxpayer, to another person for
697	697	human organ transplantation. The expenses may be claimed as a
698	698	subtraction modification provided for in this section to the extent the
699	699	expenses are not already subtracted from the taxpayer's federal adjusted
700	700	gross income. In no circumstances shall the subtraction modification
701	701	provided for in this section for any individual, or a dependent, exceed
702	702	$5,000. As used in this section, "human organ" means all or part of a liver,
703	703	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
704	704	paragraph shall take effect on the day the secretary of revenue certifies to
705	705	the director of the budget that the cost for the department of revenue of
706	706	modifications to the automated tax system for the purpose of
707	707	implementing this paragraph will not exceed $20,000.
708	708	(xxii) For taxable years beginning after December 31, 2012, and
709	709	ending before January 1, 2017, the amount of net gain from the sale of: (1)
710	710	Cattle and horses, regardless of age, held by the taxpayer for draft,
711	711	breeding, dairy or sporting purposes, and held by such taxpayer for 24
712	712	months or more from the date of acquisition; and (2) other livestock,
713	713	regardless of age, held by the taxpayer for draft, breeding, dairy or
714	714	sporting purposes, and held by such taxpayer for 12 months or more from
715	715	the date of acquisition. The subtraction from federal adjusted gross income
716	716	shall be limited to the amount of the additions recognized under the
717	717	provisions of subsection (b)(xix) attributable to the business in which the
718	718	livestock sold had been used. As used in this paragraph, the term
719	719	"livestock" shall not include poultry.
720	720	(xxiii) For all taxable years beginning after December 31, 2012,
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764	764	amounts received under either the Overland Park, Kansas police
765	765	department retirement plan or the Overland Park, Kansas fire department
766	766	retirement plan, both as established by the city of Overland Park, pursuant
767	767	to the city's home rule authority.
768	768	(xxiv) For taxable years beginning after December 31, 2013, and
769	769	ending before January 1, 2017, the net gain from the sale from Christmas
770	770	trees grown in Kansas and held by the taxpayer for six years or more.
771	771	(xxv) For all taxable years commencing after December 31, 2020,
772	772	100% of global intangible low-taxed income under section 951A of the
773	773	federal internal revenue code of 1986, before any deductions allowed
774	774	under section 250(a)(1)(B) of such code.
775	775	(xxvi) For all taxable years commencing after December 31, 2020,
776	776	the amount disallowed as a deduction pursuant to section 163(j) of the
777	777	federal internal revenue code of 1986, as in effect on January 1, 2018.
778	778	(xxvii) For taxable years commencing after December 31, 2020, the
779	779	amount disallowed as a deduction pursuant to section 274 of the federal
780	780	internal revenue code of 1986 for meal expenditures shall be allowed to
781	781	the extent such expense was deductible for determining federal income tax
782	782	and was allowed and in effect on December 31, 2017.
783	783	(xxviii) For all taxable years beginning after December 31, 2021: (1)
784	784	The amount contributed to a first-time home buyer savings account
785	785	pursuant to K.S.A. 2022 Supp. 58-4903, and amendments thereto, in an
786	786	amount not to exceed $3,000 for an individual or $6,000 for a married
787	787	couple filing a joint return; or (2) amounts received as income earned from
788	788	assets in a first-time home buyer savings account.
789	789	(d) There shall be added to or subtracted from federal adjusted gross
790	790	income the taxpayer's share, as beneficiary of an estate or trust, of the
791	791	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
792	792	amendments thereto.
793	793	(e) The amount of modifications required to be made under this
794	794	section by a partner which relates to items of income, gain, loss, deduction
795	795	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
796	796	amendments thereto, to the extent that such items affect federal adjusted
797	797	gross income of the partner.
798	798	(f) No taxpayer shall be assessed penalties and interest from the
799	799	underpayment of taxes due to changes to this section that became law on
800	800	July 1, 2017, so long as such underpayment is rectified on or before April
801	801	17, 2018.
802	802	Sec. 2. K.S.A. 2022 Supp. 79-32,117 is hereby repealed.
803	803	Sec. 3. This act shall take effect and be in force from and after its
804	804	publication in the statute book.
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