Kansas 2025-2026 Regular Session

Kansas House Bill HB2059 Compare Versions

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

Old	New	Differences
1	1	Session of 2025
2	2	HOUSE BILL No. 2059
3	3	By Committee on Taxation
4	4	Requested by Representative Awerkamp
5	5	1-22
6	6	AN ACT concerning income taxation; relating to Kansas adjusted gross
7	7	income; providing a subtraction modification for amounts paid by the
8	8	taxpayer during the taxable year as a member of a health care sharing
9	9	ministry; amending K.S.A. 2024 Supp. 79-32,117 and repealing the
10	10	existing section.
11	11	Be it enacted by the Legislature of the State of Kansas:
12	12	Section 1. K.S.A. 2024 Supp. 79-32,117 is hereby amended to read as
13	13	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
14	14	means such individual's federal adjusted gross income for the taxable year,
15	15	with the modifications specified in this section.
16	16	(b) There shall be added to federal adjusted gross income:
17	17	(i) Interest income less any related expenses directly incurred in the
18	18	purchase of state or political subdivision obligations, to the extent that the
19	19	same is not included in federal adjusted gross income, on obligations of
20	20	any state or political subdivision thereof, but to the extent that interest
21	21	income on obligations of this state or a political subdivision thereof issued
22	22	prior to January 1, 1988, is specifically exempt from income tax under the
23	23	laws of this state authorizing the issuance of such obligations, it shall be
24	24	excluded from computation of Kansas adjusted gross income whether or
25	25	not included in federal adjusted gross income. Interest income on
26	26	obligations of this state or a political subdivision thereof issued after
27	27	December 31, 1987, shall be excluded from computation of Kansas
28	28	adjusted gross income whether or not included in federal adjusted gross
29	29	income.
30	30	(ii) Taxes on or measured by income or fees or payments in lieu of
31	31	income taxes imposed by this state or any other taxing jurisdiction to the
32	32	extent deductible in determining federal adjusted gross income and not
33	33	credited against federal income tax. This paragraph shall not apply to taxes
34	34	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
35	35	amendments thereto, for privilege tax year 1995, and all such years
36	36	thereafter.
37	37	(iii) The federal net operating loss deduction, except that the federal
38	38	net operating loss deduction shall not be added to an individual's federal
39	39	adjusted gross income for tax years beginning after December 31, 2016.
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75	75	(iv) Federal income tax refunds received by the taxpayer if the
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 subsection
115	115	(c)(xv) or if such amounts are not already included in the federal adjusted
116	116	gross income.
117	117	(xi) The amount of any contribution made to the same extent the
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161	161	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
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
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247	247	as determined under the federal internal revenue code and reported from
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
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333	333	care of the taxpayer or the taxpayer's spouse or dependents when such
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 of any interest expense paid or accrued in a previous taxable
358	358	year but allowed as a deduction pursuant to section 163 of the federal
359	359	internal revenue code in the current taxable year by reason of the
360	360	carryforward of disallowed business interest pursuant to section 163(j) of
361	361	the federal internal revenue code. For purposes of this paragraph, an
362	362	interest expense is considered paid or accrued only in the first taxable year
363	363	the deduction would have been allowable pursuant to section 163 of the
364	364	federal internal revenue code if the limitation pursuant to section 163(j) of
365	365	the federal internal revenue code did not exist.
366	366	(xxviii) For all taxable years beginning after December 31, 2021, the
367	367	amount of any contributions to, or earnings from, a first-time home buyer
368	368	savings account if distributions from the account were not used to pay for
369	369	expenses or transactions authorized pursuant to K.S.A. 2024 Supp. 58-
370	370	4904, and amendments thereto, or were not held for the minimum length
371	371	of time required pursuant to K.S.A. 2024 Supp. 58-4904, and amendments
372	372	thereto. Contributions to, or earnings from, such account shall also include
373	373	any amount resulting from the account holder not designating a surviving
374	374	payable on death beneficiary pursuant to K.S.A. 2024 Supp. 58-4904(e),
375	375	and amendments thereto.
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419	419	(xxix) For all taxable years beginning after December 31, 2024, the
420	420	amount of any contributions to, or earnings from, an adoption savings
421	421	account if distributions from the account were not used to pay for expenses
422	422	or transactions authorized pursuant to K.S.A. 2024 Supp. 38-2504, and
423	423	amendments thereto, or were not held for the minimum length of time
424	424	required pursuant to K.S.A. 2024 Supp. 38-2504, and amendments thereto.
425	425	Contributions to, or earnings from, such account shall also include any
426	426	amount resulting from the account holder not designating a surviving
427	427	payable on death beneficiary pursuant to K.S.A. 2024 Supp. 38-2504(e),
428	428	and amendments thereto.
429	429	(c) There shall be subtracted from federal adjusted gross income:
430	430	(i) Interest or dividend income on obligations or securities of any
431	431	authority, commission or instrumentality of the United States and its
432	432	possessions less any related expenses directly incurred in the purchase of
433	433	such obligations or securities, to the extent included in federal adjusted
434	434	gross income but exempt from state income taxes under the laws of the
435	435	United States.
436	436	(ii) Any amounts received which are included in federal adjusted
437	437	gross income but which are specifically exempt from Kansas income
438	438	taxation under the laws of the state of Kansas.
439	439	(iii) The portion of any gain or loss from the sale or other disposition
440	440	of property having a higher adjusted basis for Kansas income tax purposes
441	441	than for federal income tax purposes on the date such property was sold or
442	442	disposed of in a transaction in which gain or loss was recognized for
443	443	purposes of federal income tax that does not exceed such difference in
444	444	basis, but if a gain is considered a long-term capital gain for federal
445	445	income tax purposes, the modification shall be limited to that portion of
446	446	such gain which is included in federal adjusted gross income.
447	447	(iv) The amount necessary to prevent the taxation under this act of
448	448	any annuity or other amount of income or gain which was properly
449	449	included in income or gain and was taxed under the laws of this state for a
450	450	taxable year prior to the effective date of this act, as amended, to the
451	451	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
452	452	the right to receive the income or gain, or to a trust or estate from which
453	453	the taxpayer received the income or gain.
454	454	(v) The amount of any refund or credit for overpayment of taxes on
455	455	or measured by income or fees or payments in lieu of income taxes
456	456	imposed by this state, or any taxing jurisdiction, to the extent included in
457	457	gross income for federal income tax purposes.
458	458	(vi) Accumulation distributions received by a taxpayer as a
459	459	beneficiary of a trust to the extent that the same are included in federal
460	460	adjusted gross income.
461	461	(vii) Amounts received as annuities under the federal civil service
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505	505	retirement system from the civil service retirement and disability fund and
506	506	other amounts received as retirement benefits in whatever form which
507	507	were earned for being employed by the federal government or for service
508	508	in the armed forces of the United States.
509	509	(viii) Amounts received by retired railroad employees as a
510	510	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
511	511	228c(a)(1) et seq.
512	512	(ix) Amounts received by retired employees of a city and by retired
513	513	employees of any board of such city as retirement allowances pursuant to
514	514	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
515	515	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
516	516	amendments thereto.
517	517	(x) (1) For taxable years beginning after December 31, 2021, the
518	518	amount of any federal credit disallowance under the provisions of 26
519	519	U.S.C. § 280C(a).
520	520	(2) For taxable years beginning after December 31, 2019, and ending
521	521	before January 1, 2022, 50% of the amount of the federal employee
522	522	retention credit disallowance under rules similar to the rules of 26 U.S.C. §
523	523	280C(a). The taxpayer shall be required to prove that such taxpayer
524	524	previously filed Kansas income tax returns and paid Kansas income tax on
525	525	the disallowed amount. Notwithstanding any other provision of law to the
526	526	contrary, any claim for refund or amended return relating to this
527	527	subparagraph shall be allowed to be filed on or before April 15, 2025, and
528	528	no claim for refund or amended return shall be allowed or filed after April
529	529	15, 2025.
530	530	(xi) For taxable years beginning after December 31, 1986, dividend
531	531	income on stock issued by Kansas venture capital, inc.
532	532	(xii) For taxable years beginning after December 31, 1989, amounts
533	533	received by retired employees of a board of public utilities as pension and
534	534	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
535	535	and amendments thereto.
536	536	(xiii) For taxable years beginning after December 31, 2004, amounts
537	537	contributed to and the amount of income earned on contributions deposited
538	538	to an individual development account under K.S.A. 74-50,201 et seq., and
539	539	amendments thereto.
540	540	(xiv) For all taxable years commencing after December 31, 1996, that
541	541	portion of any income of a bank organized under the laws of this state or
542	542	any other state, a national banking association organized under the laws of
543	543	the United States, an association organized under the savings and loan
544	544	code of this state or any other state, or a federal savings association
545	545	organized under the laws of the United States, for which an election as an
546	546	S corporation under subchapter S of the federal internal revenue code is in
547	547	effect, which accrues to the taxpayer who is a stockholder of such
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591	591	corporation and which is not distributed to the stockholders as dividends of
592	592	the corporation. For taxable years beginning after December 31, 2012, and
593	593	ending before January 1, 2017, the amount of modification under this
594	594	subsection shall exclude the portion of income or loss reported on schedule
595	595	E and included on line 17 of the taxpayer's form 1040 federal individual
596	596	income tax return.
597	597	(xv) The cumulative amounts not exceeding $3,000, or $6,000 for a
598	598	married couple filing a joint return, for each designated beneficiary that
599	599	are contributed to: (1) A family postsecondary education savings account
600	600	established under the Kansas postsecondary education savings program or
601	601	a qualified tuition program established and maintained by another state or
602	602	agency or instrumentality thereof pursuant to section 529 of the internal
603	603	revenue code of 1986, as amended, for the purpose of paying the qualified
604	604	higher education expenses of a designated beneficiary; or (2) an achieving
605	605	a better life experience (ABLE) account established under the Kansas
606	606	ABLE savings program or a qualified ABLE program established and
607	607	maintained by another state or agency or instrumentality thereof pursuant
608	608	to section 529A of the internal revenue code of 1986, as amended, for the
609	609	purpose of saving private funds to support an individual with a disability.
610	610	The terms and phrases used in this paragraph shall have the meaning
611	611	respectively ascribed thereto by the provisions of K.S.A. 75-643 and 75-
612	612	652, and amendments thereto, and the provisions of such sections are
613	613	hereby incorporated by reference for all purposes thereof. For all taxable
614	614	years beginning after December 31, 2022, contributions made to a
615	615	qualified tuition program account or a qualified ABLE program account
616	616	pursuant to this paragraph on and after January 1 but prior to the date
617	617	required for filing a return pursuant to K.S.A. 79-3221, and amendments
618	618	thereto, of the successive taxable year may be elected by the taxpayer to
619	619	apply to the prior taxable year if such election is made at the time of filing
620	620	the return. No contribution shall be used as a modification pursuant to this
621	621	paragraph in more than one taxable year.
622	622	(xvi) For all taxable years beginning after December 31, 2004,
623	623	amounts received by taxpayers who are or were members of the armed
624	624	forces of the United States, including service in the Kansas army and air
625	625	national guard, as a recruitment, sign up or retention bonus received by
626	626	such taxpayer as an incentive to join, enlist or remain in the armed services
627	627	of the United States, including service in the Kansas army and air national
628	628	guard, and amounts received for repayment of educational or student loans
629	629	incurred by or obligated to such taxpayer and received by such taxpayer as
630	630	a result of such taxpayer's service in the armed forces of the United States,
631	631	including service in the Kansas army and air national guard.
632	632	(xvii) For all taxable years beginning after December 31, 2004,
633	633	amounts received by taxpayers who are eligible members of the Kansas
634	634	1
635	635	2
636	636	3
637	637	4
638	638	5
639	639	6
640	640	7
641	641	8
642	642	9
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649	649	16
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666	666	33
667	667	34
668	668	35
669	669	36
670	670	37
671	671	38
672	672	39
673	673	40
674	674	41
675	675	42
676	676	43 HB 2059 9
677	677	army and air national guard as a reimbursement pursuant to K.S.A. 48-
678	678	281, and amendments thereto, and amounts received for death benefits
679	679	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
680	680	such death benefits are included in federal adjusted gross income of the
681	681	taxpayer.
682	682	(xviii) (A) For all taxable years beginning after December 31, 2007,
683	683	and ending before January 1, 2024, amounts received as benefits under the
684	684	federal social security act which are included in federal adjusted gross
685	685	income of a taxpayer with federal adjusted gross income of $75,000 or
686	686	less, whether such taxpayer's filing status is single, head of household,
687	687	married filing separate or married filing jointly.
688	688	(B) For all taxable years beginning after December 31, 2023, amounts
689	689	received as benefits under the federal social security act that are included
690	690	in federal adjusted gross income of a taxpayer.
691	691	(xix) Amounts received by retired employees of Washburn university
692	692	as retirement and pension benefits under the university's retirement plan.
693	693	(xx) For taxable years beginning after December 31, 2012, and
694	694	ending before January 1, 2017, the amount of any: (1) Net profit from
695	695	business as determined under the federal internal revenue code and
696	696	reported from schedule C and on line 12 of the taxpayer's form 1040
697	697	federal individual income tax return; (2) net income, not including
698	698	guaranteed payments as defined in section 707(c) of the federal internal
699	699	revenue code and as reported to the taxpayer from federal schedule K-1,
700	700	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
701	701	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
702	702	partnerships, S corporations, estates, trusts, residual interest in real estate
703	703	mortgage investment conduits and net farm rental as determined under the
704	704	federal internal revenue code and reported from schedule E and on line 17
705	705	of the taxpayer's form 1040 federal individual income tax return; and (3)
706	706	net farm profit as determined under the federal internal revenue code and
707	707	reported from schedule F and on line 18 of the taxpayer's form 1040
708	708	federal income tax return; all to the extent included in the taxpayer's
709	709	federal adjusted gross income. For purposes of this subsection, references
710	710	to the federal form 1040 and federal schedule C, schedule E, and schedule
711	711	F, shall be to such form and schedules as they existed for tax year 2011
712	712	and as revised thereafter by the internal revenue service.
713	713	(xxi) For all taxable years beginning after December 31, 2013,
714	714	amounts equal to the unreimbursed travel, lodging and medical
715	715	expenditures directly incurred by a taxpayer while living, or a dependent
716	716	of the taxpayer while living, for the donation of one or more human organs
717	717	of the taxpayer, or a dependent of the taxpayer, to another person for
718	718	human organ transplantation. The expenses may be claimed as a
719	719	subtraction modification provided for in this section to the extent the
720	720	1
721	721	2
722	722	3
723	723	4
724	724	5
725	725	6
726	726	7
727	727	8
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749	749	30
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757	757	38
758	758	39
759	759	40
760	760	41
761	761	42
762	762	43 HB 2059 10
763	763	expenses are not already subtracted from the taxpayer's federal adjusted
764	764	gross income. In no circumstances shall the subtraction modification
765	765	provided for in this section for any individual, or a dependent, exceed
766	766	$5,000. As used in this section, "human organ" means all or part of a liver,
767	767	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
768	768	paragraph shall take effect on the day the secretary of revenue certifies to
769	769	the director of the budget that the cost for the department of revenue of
770	770	modifications to the automated tax system for the purpose of
771	771	implementing this paragraph will not exceed $20,000.
772	772	(xxii) For taxable years beginning after December 31, 2012, and
773	773	ending before January 1, 2017, the amount of net gain from the sale of: (1)
774	774	Cattle and horses, regardless of age, held by the taxpayer for draft,
775	775	breeding, dairy or sporting purposes, and held by such taxpayer for 24
776	776	months or more from the date of acquisition; and (2) other livestock,
777	777	regardless of age, held by the taxpayer for draft, breeding, dairy or
778	778	sporting purposes, and held by such taxpayer for 12 months or more from
779	779	the date of acquisition. The subtraction from federal adjusted gross income
780	780	shall be limited to the amount of the additions recognized under the
781	781	provisions of subsection (b)(xix) attributable to the business in which the
782	782	livestock sold had been used. As used in this paragraph, the term
783	783	"livestock" shall not include poultry.
784	784	(xxiii) For all taxable years beginning after December 31, 2012,
785	785	amounts received under either the Overland Park, Kansas police
786	786	department retirement plan or the Overland Park, Kansas fire department
787	787	retirement plan, both as established by the city of Overland Park, pursuant
788	788	to the city's home rule authority.
789	789	(xxiv) For taxable years beginning after December 31, 2013, and
790	790	ending before January 1, 2017, the net gain from the sale from Christmas
791	791	trees grown in Kansas and held by the taxpayer for six years or more.
792	792	(xxv) For all taxable years commencing after December 31, 2020,
793	793	100% of global intangible low-taxed income under section 951A of the
794	794	federal internal revenue code of 1986, before any deductions allowed
795	795	under section 250(a)(1)(B) of such code.
796	796	(xxvi) (1) For all taxable years commencing after December 31,
797	797	2020, the amount of any interest expense paid or accrued in the current
798	798	taxable year and disallowed as a deduction pursuant to section 163(j) of
799	799	the federal internal revenue code.
800	800	(2) For purposes of this paragraph, an interest expense is considered
801	801	paid or accrued only in the first taxable year the deduction would have
802	802	been allowable pursuant to section 163 of the federal internal revenue code
803	803	if the limitation pursuant to section 163(j) of the federal internal revenue
804	804	code did not exist.
805	805	(3) For tax year 2021, an amount equal to the sum of any interest
806	806	1
807	807	2
808	808	3
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810	810	5
811	811	6
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841	841	36
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843	843	38
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845	845	40
846	846	41
847	847	42
848	848	43 HB 2059 11
849	849	expenses paid or accrued in tax years 2018, 2019 and 2020 less the sum of
850	850	amounts allowed as a deduction pursuant to section 163 of the federal
851	851	internal revenue code in tax years 2018, 2019 and 2020.
852	852	(xxvii) For taxable years commencing after December 31, 2020, the
853	853	amount disallowed as a deduction pursuant to section 274 of the federal
854	854	internal revenue code of 1986 for meal expenditures shall be allowed to
855	855	the extent such expense was deductible for determining federal income tax
856	856	and was allowed and in effect on December 31, 2017.
857	857	(xxviii) For all taxable years beginning after December 31, 2021: (1)
858	858	The amount contributed to a first-time home buyer savings account
859	859	pursuant to K.S.A. 2024 Supp. 58-4903, and amendments thereto, in an
860	860	amount not to exceed $3,000 for an individual or $6,000 for a married
861	861	couple filing a joint return; or (2) amounts received as income earned from
862	862	assets in a first-time home buyer savings account. For all taxable years
863	863	beginning after December 31, 2022, contributions made to a first-time
864	864	home buyer savings account pursuant to subparagraph (1) on and after
865	865	January 1 but prior to the date required for filing a return pursuant to
866	866	K.S.A. 79-3221, and amendments thereto, of the successive taxable year
867	867	may be elected by the taxpayer to apply to the prior taxable year if such
868	868	election is made at the time of filing the return. No contribution shall be
869	869	used as a modification pursuant to subparagraph (1) in more than one
870	870	taxable year.
871	871	(xxix) For taxable years beginning after December 31, 2017, for an
872	872	individual taxpayer who carried back federal net operating losses arising in
873	873	a taxable year beginning after December 31, 2017, and before January 1,
874	874	2021, pursuant to section 172(b)(1) of the federal internal revenue code as
875	875	amended by the coronavirus aid, relief, and economic security act
876	876	(CARES act), the amount of such federal net operating loss carryback for
877	877	each applicable year. If the amount of such federal net operating loss
878	878	carryback exceeds the taxpayer's Kansas adjusted gross income for such
879	879	taxable year, the amount thereof that exceeds such Kansas adjusted gross
880	880	income may be carried forward as a subtraction modification in the
881	881	following taxable year or years until the total amount of such federal net
882	882	operating loss carryback has been deducted, except that no such unused
883	883	amount shall be carried forward for deduction as a subtraction
884	884	modification after the 20
885	885	th
886	886	taxable year following the taxable year of the
887	887	net operating loss. Notwithstanding any other provision of law to the
888	888	contrary, an extension of time shall be allowed for a claim for refund or
889	889	amended return for tax years 2018, 2019 or 2020 limited to the application
890	890	of the provisions of this paragraph and such claim for refund or amended
891	891	return must be filed on or before April 15, 2025.
892	892	(xxx) For all taxable years beginning after December 31, 2024: (1)
893	893	The amount contributed to an adoption savings account pursuant to K.S.A.
894	894	1
895	895	2
896	896	3
897	897	4
898	898	5
899	899	6
900	900	7
901	901	8
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903	903	10
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925	925	32
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928	928	35
929	929	36
930	930	37
931	931	38
932	932	39
933	933	40
934	934	41
935	935	42
936	936	43 HB 2059 12
937	937	2024 Supp. 38-2503, and amendments thereto, in an amount not to exceed
938	938	$6,000 for an individual or $12,000 for a married couple filing a joint
939	939	return; or (2) amounts received as income earned from assets in an
940	940	adoption savings account.
941	941	(xxxi) (1) For all taxable years beginning after December 31, 2025,
942	942	the amount the taxpayer has paid during the taxable year as a member of
943	943	a health care sharing ministry to the extent the amount was included in
944	944	federal adjusted gross income for federal income tax purposes.
945	945	(2) As used in this subsection, "health care sharing ministry" means a
946	946	faith-based nonprofit organization tax exempt under the internal revenue
947	947	code that:
948	948	(A) Limits membership to those who are of a similar faith;
949	949	(B) acts as an organizational clearinghouse for information between
950	950	members or subscribers who have financial, physical or medical needs
951	951	and members or subscribers with the present ability to assist those with
952	952	present financial or medical needs;
953	953	(C) provides for the financial or medical needs of a member or
954	954	subscriber through gifts directly from one member or subscriber to
955	955	another. The requirements of this subparagraph can be satisfied by a trust
956	956	established solely for the benefit of members or subscribers, which trust is
957	957	audited annually by an independent auditing firm;
958	958	(D) provides amounts that members or subscribers may give with no
959	959	assumption of risk or promise to pay either among the members or
960	960	subscribers or between the members or subscribers and such
961	961	organization;
962	962	(E) provides a written monthly statement to all members or
963	963	subscribers, listing the total dollar amount of qualified needs submitted to
964	964	such organization, as well as the amount actually published or assigned to
965	965	members or subscribers for voluntary payment; and
966	966	(F) provides a written disclaimer on or accompanying all
967	967	promotional or informational documents distributed by or on behalf of the
968	968	organization, including applications and guideline materials, that such
969	969	entity is not an insurance company nor is it offered through an insurance
970	970	company.
971	971	(d) There shall be added to or subtracted from federal adjusted gross
972	972	income the taxpayer's share, as beneficiary of an estate or trust, of the
973	973	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
974	974	amendments thereto.
975	975	(e) The amount of modifications required to be made under this
976	976	section by a partner which relates to items of income, gain, loss, deduction
977	977	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
978	978	amendments thereto, to the extent that such items affect federal adjusted
979	979	gross income of the partner.
980	980	1
981	981	2
982	982	3
983	983	4
984	984	5
985	985	6
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1020	1020	41
1021	1021	42
1022	1022	43 HB 2059 13
1023	1023	Sec. 2. K.S.A. 2024 Supp. 79-32,117 is hereby repealed.
1024	1024	Sec. 3. This act shall take effect and be in force from and after its
1025	1025	publication in the statute book.
1026	1026	1
1027	1027	2
1028	1028	3