Kansas 2025-2026 Regular Session

Kansas Senate Bill SB39 Compare Versions

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1	1	Session of 2025
2	2	SENATE BILL No. 39
3	3	By Committee on Federal and State Affairs
4	4	1-16
5	5	AN ACT concerning legal tender; establishing the Kansas legal tender act;
6	6	reaffirming gold and silver coin as legal tender; providing an income
7	7	taxation subtraction modification for gains from the sale of specie;
8	8	amending K.S.A. 2024 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	New Section 1. Sections 1 through 6, and amendments thereto, shall
12	12	be known and may be cited as the Kansas legal tender act.
13	13	New Sec. 2. As used in the Kansas legal tender act:
14	14	(a) "Legal tender" means a recognized medium of exchange for the
15	15	payment of debts and taxes; and
16	16	(b) "specie" means:
17	17	(1) Coin having gold or silver content; or
18	18	(2) refined gold or silver bullion that is coined, stamped or imprinted
19	19	with its weight and purity and valued primarily based on its metal content
20	20	and not its form.
21	21	New Sec. 3. Specie legal tender in Kansas consists of:
22	22	(a) Specie coin issued by the United States government at any time;
23	23	or
24	24	(b) any other specie that a court of competent jurisdiction, by final
25	25	and unappealable order, rules to be within state authority to make or
26	26	designate as legal tender.
27	27	New Sec. 4. (a) No specie or legal tender shall be characterized as
28	28	personal property for taxation or regulatory purposes.
29	29	(b) The exchange of one type or form of legal tender for another type
30	30	or form of legal tender shall not give rise to any tax liability of any kind.
31	31	(c) The purchase, sale or exchange of any type or form of specie shall
32	32	not give rise to any tax liability of any kind.
33	33	(d) The provisions of this section shall not apply to taxable
34	34	distributions from any retirement plan account that holds specie.
35	35	New Sec. 5. Unless expressly provided by statute or by contract, no
36	36	person shall have the right to compel any other person to tender specie or
37	37	to accept specie as tender.
38	38	New Sec. 6. (a) The attorney general shall enforce this act without
39	39	prejudice to any private right of action.
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76	76	(b) Kansas courts shall require specific performance as a remedy for
77	77	breach of any contract designating a type or form of specie as tender.
78	78	Sec. 7. K.S.A. 2024 Supp. 79-32,117 is hereby amended to read as
79	79	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
80	80	means such individual's federal adjusted gross income for the taxable year,
81	81	with the modifications specified in this section.
82	82	(b) There shall be added to federal adjusted gross income:
83	83	(i) Interest income less any related expenses directly incurred in the
84	84	purchase of state or political subdivision obligations, to the extent that the
85	85	same is not included in federal adjusted gross income, on obligations of
86	86	any state or political subdivision thereof, but to the extent that interest
87	87	income on obligations of this state or a political subdivision thereof issued
88	88	prior to January 1, 1988, is specifically exempt from income tax under the
89	89	laws of this state authorizing the issuance of such obligations, it shall be
90	90	excluded from computation of Kansas adjusted gross income whether or
91	91	not included in federal adjusted gross income. Interest income on
92	92	obligations of this state or a political subdivision thereof issued after
93	93	December 31, 1987, shall be excluded from computation of Kansas
94	94	adjusted gross income whether or not included in federal adjusted gross
95	95	income.
96	96	(ii) Taxes on or measured by income or fees or payments in lieu of
97	97	income taxes imposed by this state or any other taxing jurisdiction to the
98	98	extent deductible in determining federal adjusted gross income and not
99	99	credited against federal income tax. This paragraph shall not apply to taxes
100	100	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
101	101	amendments thereto, for privilege tax year 1995, and all such years
102	102	thereafter.
103	103	(iii) The federal net operating loss deduction, except that the federal
104	104	net operating loss deduction shall not be added to an individual's federal
105	105	adjusted gross income for tax years beginning after December 31, 2016.
106	106	(iv) Federal income tax refunds received by the taxpayer if the
107	107	deduction of the taxes being refunded resulted in a tax benefit for Kansas
108	108	income tax purposes during a prior taxable year. Such refunds shall be
109	109	included in income in the year actually received regardless of the method
110	110	of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
111	111	be deemed to have resulted if the amount of the tax had been deducted in
112	112	determining income subject to a Kansas income tax for a prior year
113	113	regardless of the rate of taxation applied in such prior year to the Kansas
114	114	taxable income, but only that portion of the refund shall be included as
115	115	bears the same proportion to the total refund received as the federal taxes
116	116	deducted in the year to which such refund is attributable bears to the total
117	117	federal income taxes paid for such year. For purposes of the foregoing
118	118	sentence, federal taxes shall be considered to have been deducted only to
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162	162	the extent such deduction does not reduce Kansas taxable income below
163	163	zero.
164	164	(v) The amount of any depreciation deduction or business expense
165	165	deduction claimed on the taxpayer's federal income tax return for any
166	166	capital expenditure in making any building or facility accessible to the
167	167	handicapped, for which expenditure the taxpayer claimed the credit
168	168	allowed by K.S.A. 79-32,177, and amendments thereto.
169	169	(vi) Any amount of designated employee contributions picked up by
170	170	an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
171	171	and amendments thereto.
172	172	(vii) The amount of any charitable contribution made to the extent the
173	173	same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
174	174	32,196, and amendments thereto.
175	175	(viii) The amount of any costs incurred for improvements to a swine
176	176	facility, claimed for deduction in determining federal adjusted gross
177	177	income, to the extent the same is claimed as the basis for any credit
178	178	allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
179	179	(ix) The amount of any ad valorem taxes and assessments paid and
180	180	the amount of any costs incurred for habitat management or construction
181	181	and maintenance of improvements on real property, claimed for deduction
182	182	in determining federal adjusted gross income, to the extent the same is
183	183	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
184	184	and amendments thereto.
185	185	(x) Amounts received as nonqualified withdrawals, as defined by
186	186	K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
187	187	family postsecondary education savings account, such amounts were
188	188	subtracted from the federal adjusted gross income pursuant to subsection
189	189	(c)(xv) or if such amounts are not already included in the federal adjusted
190	190	gross income.
191	191	(xi) The amount of any contribution made to the same extent the
192	192	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
193	193	50,154, and amendments thereto.
194	194	(xii) For taxable years commencing after December 31, 2004,
195	195	amounts received as withdrawals not in accordance with the provisions of
196	196	K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
197	197	to an individual development account, such amounts were subtracted from
198	198	the federal adjusted gross income pursuant to subsection (c)(xiii), or if
199	199	such amounts are not already included in the federal adjusted gross
200	200	income.
201	201	(xiii) The amount of any expenditures claimed for deduction in
202	202	determining federal adjusted gross income, to the extent the same is
203	203	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
204	204	through 79-32,220 or 79-32,222, and amendments thereto.
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248	248	(xiv) The amount of any amortization deduction claimed in
249	249	determining federal adjusted gross income to the extent the same is
250	250	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
251	251	thereto.
252	252	(xv) The amount of any expenditures claimed for deduction in
253	253	determining federal adjusted gross income, to the extent the same is
254	254	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
255	255	through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
256	256	32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
257	257	32,251 through 79-32,254, and amendments thereto.
258	258	(xvi) The amount of any amortization deduction claimed in
259	259	determining federal adjusted gross income to the extent the same is
260	260	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
261	261	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
262	262	(xvii) The amount of any amortization deduction claimed in
263	263	determining federal adjusted gross income to the extent the same is
264	264	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
265	265	thereto.
266	266	(xviii) For taxable years commencing after December 31, 2006, the
267	267	amount of any ad valorem or property taxes and assessments paid to a state
268	268	other than Kansas or local government located in a state other than Kansas
269	269	by a taxpayer who resides in a state other than Kansas, when the law of
270	270	such state does not allow a resident of Kansas who earns income in such
271	271	other state to claim a deduction for ad valorem or property taxes or
272	272	assessments paid to a political subdivision of the state of Kansas in
273	273	determining taxable income for income tax purposes in such other state, to
274	274	the extent that such taxes and assessments are claimed as an itemized
275	275	deduction for federal income tax purposes.
276	276	(xix) For taxable years beginning after December 31, 2012, and
277	277	ending before January 1, 2017, the amount of any: (1) Loss from business
278	278	as determined under the federal internal revenue code and reported from
279	279	schedule C and on line 12 of the taxpayer's form 1040 federal individual
280	280	income tax return; (2) loss from rental real estate, royalties, partnerships, S
281	281	corporations, except those with wholly owned subsidiaries subject to the
282	282	Kansas privilege tax, estates, trusts, residual interest in real estate
283	283	mortgage investment conduits and net farm rental as determined under the
284	284	federal internal revenue code and reported from schedule E and on line 17
285	285	of the taxpayer's form 1040 federal individual income tax return; and (3)
286	286	farm loss as determined under the federal internal revenue code and
287	287	reported from schedule F and on line 18 of the taxpayer's form 1040
288	288	federal income tax return; all to the extent deducted or subtracted in
289	289	determining the taxpayer's federal adjusted gross income. For purposes of
290	290	this subsection, references to the federal form 1040 and federal schedule
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334	334	C, schedule E, and schedule F, shall be to such form and schedules as they
335	335	existed for tax year 2011, and as revised thereafter by the internal revenue
336	336	service.
337	337	(xx) For taxable years beginning after December 31, 2012, and
338	338	ending before January 1, 2017, the amount of any deduction for self-
339	339	employment taxes under section 164(f) of the federal internal revenue
340	340	code as in effect on January 1, 2012, and amendments thereto, in
341	341	determining the federal adjusted gross income of an individual taxpayer, to
342	342	the extent the deduction is attributable to income reported on schedule C,
343	343	E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
344	344	tax return.
345	345	(xxi) For taxable years beginning after December 31, 2012, and
346	346	ending before January 1, 2017, the amount of any deduction for pension,
347	347	profit sharing, and annuity plans of self-employed individuals under
348	348	section 62(a)(6) of the federal internal revenue code as in effect on January
349	349	1, 2012, and amendments thereto, in determining the federal adjusted gross
350	350	income of an individual taxpayer.
351	351	(xxii) For taxable years beginning after December 31, 2012, and
352	352	ending before January 1, 2017, the amount of any deduction for health
353	353	insurance under section 162(l) of the federal internal revenue code as in
354	354	effect on January 1, 2012, and amendments thereto, in determining the
355	355	federal adjusted gross income of an individual taxpayer.
356	356	(xxiii) For taxable years beginning after December 31, 2012, and
357	357	ending before January 1, 2017, the amount of any deduction for domestic
358	358	production activities under section 199 of the federal internal revenue code
359	359	as in effect on January 1, 2012, and amendments thereto, in determining
360	360	the federal adjusted gross income of an individual taxpayer.
361	361	(xxiv) For taxable years commencing after December 31, 2013, that
362	362	portion of the amount of any expenditure deduction claimed in
363	363	determining federal adjusted gross income for expenses paid for medical
364	364	care of the taxpayer or the taxpayer's spouse or dependents when such
365	365	expenses were paid or incurred for an abortion, or for a health benefit plan,
366	366	as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
367	367	an optional rider for coverage of abortion in accordance with K.S.A. 40-
368	368	2,190, and amendments thereto, to the extent that such taxes and
369	369	assessments are claimed as an itemized deduction for federal income tax
370	370	purposes.
371	371	(xxv) For taxable years commencing after December 31, 2013, that
372	372	portion of the amount of any expenditure deduction claimed in
373	373	determining federal adjusted gross income for expenses paid by a taxpayer
374	374	for health care when such expenses were paid or incurred for abortion
375	375	coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
376	376	amendments thereto, when such expenses were paid or incurred for
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420	420	abortion coverage or amounts contributed to health savings accounts for
421	421	such taxpayer's employees for the purchase of an optional rider for
422	422	coverage of abortion in accordance with K.S.A. 40-2,190, and
423	423	amendments thereto, to the extent that such taxes and assessments are
424	424	claimed as a deduction for federal income tax purposes.
425	425	(xxvi) For all taxable years beginning after December 31, 2016, the
426	426	amount of any charitable contribution made to the extent the same is
427	427	claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
428	428	amendments thereto, and is also claimed as an itemized deduction for
429	429	federal income tax purposes.
430	430	(xxvii) For all taxable years commencing after December 31, 2020,
431	431	the amount of any interest expense paid or accrued in a previous taxable
432	432	year but allowed as a deduction pursuant to section 163 of the federal
433	433	internal revenue code in the current taxable year by reason of the
434	434	carryforward of disallowed business interest pursuant to section 163(j) of
435	435	the federal internal revenue code. For purposes of this paragraph, an
436	436	interest expense is considered paid or accrued only in the first taxable year
437	437	the deduction would have been allowable pursuant to section 163 of the
438	438	federal internal revenue code if the limitation pursuant to section 163(j) of
439	439	the federal internal revenue code did not exist.
440	440	(xxviii) For all taxable years beginning after December 31, 2021, the
441	441	amount of any contributions to, or earnings from, a first-time home buyer
442	442	savings account if distributions from the account were not used to pay for
443	443	expenses or transactions authorized pursuant to K.S.A. 2024 Supp. 58-
444	444	4904, and amendments thereto, or were not held for the minimum length
445	445	of time required pursuant to K.S.A. 2024 Supp. 58-4904, and amendments
446	446	thereto. Contributions to, or earnings from, such account shall also include
447	447	any amount resulting from the account holder not designating a surviving
448	448	payable on death beneficiary pursuant to K.S.A. 2024 Supp. 58-4904(e),
449	449	and amendments thereto.
450	450	(xxix) For all taxable years beginning after December 31, 2024, the
451	451	amount of any contributions to, or earnings from, an adoption savings
452	452	account if distributions from the account were not used to pay for expenses
453	453	or transactions authorized pursuant to K.S.A. 2024 Supp. 38-2504, and
454	454	amendments thereto, or were not held for the minimum length of time
455	455	required pursuant to K.S.A. 2024 Supp. 38-2504, and amendments thereto.
456	456	Contributions to, or earnings from, such account shall also include any
457	457	amount resulting from the account holder not designating a surviving
458	458	payable on death beneficiary pursuant to K.S.A. 2024 Supp. 38-2504(e),
459	459	and amendments thereto.
460	460	(c) There shall be subtracted from federal adjusted gross income:
461	461	(i) Interest or dividend income on obligations or securities of any
462	462	authority, commission or instrumentality of the United States and its
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506	506	possessions less any related expenses directly incurred in the purchase of
507	507	such obligations or securities, to the extent included in federal adjusted
508	508	gross income but exempt from state income taxes under the laws of the
509	509	United States.
510	510	(ii) Any amounts received which are included in federal adjusted
511	511	gross income but which are specifically exempt from Kansas income
512	512	taxation under the laws of the state of Kansas.
513	513	(iii) The portion of any gain or loss from the sale or other disposition
514	514	of property having a higher adjusted basis for Kansas income tax purposes
515	515	than for federal income tax purposes on the date such property was sold or
516	516	disposed of in a transaction in which gain or loss was recognized for
517	517	purposes of federal income tax that does not exceed such difference in
518	518	basis, but if a gain is considered a long-term capital gain for federal
519	519	income tax purposes, the modification shall be limited to that portion of
520	520	such gain which is included in federal adjusted gross income.
521	521	(iv) The amount necessary to prevent the taxation under this act of
522	522	any annuity or other amount of income or gain which was properly
523	523	included in income or gain and was taxed under the laws of this state for a
524	524	taxable year prior to the effective date of this act, as amended, to the
525	525	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
526	526	the right to receive the income or gain, or to a trust or estate from which
527	527	the taxpayer received the income or gain.
528	528	(v) The amount of any refund or credit for overpayment of taxes on
529	529	or measured by income or fees or payments in lieu of income taxes
530	530	imposed by this state, or any taxing jurisdiction, to the extent included in
531	531	gross income for federal income tax purposes.
532	532	(vi) Accumulation distributions received by a taxpayer as a
533	533	beneficiary of a trust to the extent that the same are included in federal
534	534	adjusted gross income.
535	535	(vii) Amounts received as annuities under the federal civil service
536	536	retirement system from the civil service retirement and disability fund and
537	537	other amounts received as retirement benefits in whatever form which
538	538	were earned for being employed by the federal government or for service
539	539	in the armed forces of the United States.
540	540	(viii) Amounts received by retired railroad employees as a
541	541	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
542	542	228c(a)(1) et seq.
543	543	(ix) Amounts received by retired employees of a city and by retired
544	544	employees of any board of such city as retirement allowances pursuant to
545	545	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
546	546	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
547	547	amendments thereto.
548	548	(x) (1) For taxable years beginning after December 31, 2021, the
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592	592	amount of any federal credit disallowance under the provisions of 26
593	593	U.S.C. § 280C(a).
594	594	(2) For taxable years beginning after December 31, 2019, and ending
595	595	before January 1, 2022, 50% of the amount of the federal employee
596	596	retention credit disallowance under rules similar to the rules of 26 U.S.C. §
597	597	280C(a). The taxpayer shall be required to prove that such taxpayer
598	598	previously filed Kansas income tax returns and paid Kansas income tax on
599	599	the disallowed amount. Notwithstanding any other provision of law to the
600	600	contrary, any claim for refund or amended return relating to this
601	601	subparagraph shall be allowed to be filed on or before April 15, 2025, and
602	602	no claim for refund or amended return shall be allowed or filed after April
603	603	15, 2025.
604	604	(xi) For taxable years beginning after December 31, 1986, dividend
605	605	income on stock issued by Kansas venture capital, inc.
606	606	(xii) For taxable years beginning after December 31, 1989, amounts
607	607	received by retired employees of a board of public utilities as pension and
608	608	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
609	609	and amendments thereto.
610	610	(xiii) For taxable years beginning after December 31, 2004, amounts
611	611	contributed to and the amount of income earned on contributions deposited
612	612	to an individual development account under K.S.A. 74-50,201 et seq., and
613	613	amendments thereto.
614	614	(xiv) For all taxable years commencing after December 31, 1996, that
615	615	portion of any income of a bank organized under the laws of this state or
616	616	any other state, a national banking association organized under the laws of
617	617	the United States, an association organized under the savings and loan
618	618	code of this state or any other state, or a federal savings association
619	619	organized under the laws of the United States, for which an election as an
620	620	S corporation under subchapter S of the federal internal revenue code is in
621	621	effect, which accrues to the taxpayer who is a stockholder of such
622	622	corporation and which is not distributed to the stockholders as dividends of
623	623	the corporation. For taxable years beginning after December 31, 2012, and
624	624	ending before January 1, 2017, the amount of modification under this
625	625	subsection shall exclude the portion of income or loss reported on schedule
626	626	E and included on line 17 of the taxpayer's form 1040 federal individual
627	627	income tax return.
628	628	(xv) The cumulative amounts not exceeding $3,000, or $6,000 for a
629	629	married couple filing a joint return, for each designated beneficiary that
630	630	are contributed to: (1) A family postsecondary education savings account
631	631	established under the Kansas postsecondary education savings program or
632	632	a qualified tuition program established and maintained by another state or
633	633	agency or instrumentality thereof pursuant to section 529 of the internal
634	634	revenue code of 1986, as amended, for the purpose of paying the qualified
635	635	1
636	636	2
637	637	3
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675	675	41
676	676	42
677	677	43 SB 39 9
678	678	higher education expenses of a designated beneficiary; or (2) an achieving
679	679	a better life experience (ABLE) account established under the Kansas
680	680	ABLE savings program or a qualified ABLE program established and
681	681	maintained by another state or agency or instrumentality thereof pursuant
682	682	to section 529A of the internal revenue code of 1986, as amended, for the
683	683	purpose of saving private funds to support an individual with a disability.
684	684	The terms and phrases used in this paragraph shall have the meaning
685	685	respectively ascribed thereto by the provisions of K.S.A. 75-643 and 75-
686	686	652, and amendments thereto, and the provisions of such sections are
687	687	hereby incorporated by reference for all purposes thereof. For all taxable
688	688	years beginning after December 31, 2022, contributions made to a
689	689	qualified tuition program account or a qualified ABLE program account
690	690	pursuant to this paragraph on and after January 1 but prior to the date
691	691	required for filing a return pursuant to K.S.A. 79-3221, and amendments
692	692	thereto, of the successive taxable year may be elected by the taxpayer to
693	693	apply to the prior taxable year if such election is made at the time of filing
694	694	the return. No contribution shall be used as a modification pursuant to this
695	695	paragraph in more than one taxable year.
696	696	(xvi) For all taxable years beginning after December 31, 2004,
697	697	amounts received by taxpayers who are or were members of the armed
698	698	forces of the United States, including service in the Kansas army and air
699	699	national guard, as a recruitment, sign up or retention bonus received by
700	700	such taxpayer as an incentive to join, enlist or remain in the armed services
701	701	of the United States, including service in the Kansas army and air national
702	702	guard, and amounts received for repayment of educational or student loans
703	703	incurred by or obligated to such taxpayer and received by such taxpayer as
704	704	a result of such taxpayer's service in the armed forces of the United States,
705	705	including service in the Kansas army and air national guard.
706	706	(xvii) For all taxable years beginning after December 31, 2004,
707	707	amounts received by taxpayers who are eligible members of the Kansas
708	708	army and air national guard as a reimbursement pursuant to K.S.A. 48-
709	709	281, and amendments thereto, and amounts received for death benefits
710	710	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
711	711	such death benefits are included in federal adjusted gross income of the
712	712	taxpayer.
713	713	(xviii) (A) For all taxable years beginning after December 31, 2007,
714	714	and ending before January 1, 2024, amounts received as benefits under the
715	715	federal social security act which are included in federal adjusted gross
716	716	income of a taxpayer with federal adjusted gross income of $75,000 or
717	717	less, whether such taxpayer's filing status is single, head of household,
718	718	married filing separate or married filing jointly.
719	719	(B) For all taxable years beginning after December 31, 2023, amounts
720	720	received as benefits under the federal social security act that are included
721	721	1
722	722	2
723	723	3
724	724	4
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763	763	43 SB 39 10
764	764	in federal adjusted gross income of a taxpayer.
765	765	(xix) Amounts received by retired employees of Washburn university
766	766	as retirement and pension benefits under the university's retirement plan.
767	767	(xx) For taxable years beginning after December 31, 2012, and
768	768	ending before January 1, 2017, the amount of any: (1) Net profit from
769	769	business as determined under the federal internal revenue code and
770	770	reported from schedule C and on line 12 of the taxpayer's form 1040
771	771	federal individual income tax return; (2) net income, not including
772	772	guaranteed payments as defined in section 707(c) of the federal internal
773	773	revenue code and as reported to the taxpayer from federal schedule K-1,
774	774	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
775	775	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
776	776	partnerships, S corporations, estates, trusts, residual interest in real estate
777	777	mortgage investment conduits and net farm rental as determined under the
778	778	federal internal revenue code and reported from schedule E and on line 17
779	779	of the taxpayer's form 1040 federal individual income tax return; and (3)
780	780	net farm profit as determined under the federal internal revenue code and
781	781	reported from schedule F and on line 18 of the taxpayer's form 1040
782	782	federal income tax return; all to the extent included in the taxpayer's
783	783	federal adjusted gross income. For purposes of this subsection, references
784	784	to the federal form 1040 and federal schedule C, schedule E, and schedule
785	785	F, shall be to such form and schedules as they existed for tax year 2011
786	786	and as revised thereafter by the internal revenue service.
787	787	(xxi) For all taxable years beginning after December 31, 2013,
788	788	amounts equal to the unreimbursed travel, lodging and medical
789	789	expenditures directly incurred by a taxpayer while living, or a dependent
790	790	of the taxpayer while living, for the donation of one or more human organs
791	791	of the taxpayer, or a dependent of the taxpayer, to another person for
792	792	human organ transplantation. The expenses may be claimed as a
793	793	subtraction modification provided for in this section to the extent the
794	794	expenses are not already subtracted from the taxpayer's federal adjusted
795	795	gross income. In no circumstances shall the subtraction modification
796	796	provided for in this section for any individual, or a dependent, exceed
797	797	$5,000. As used in this section, "human organ" means all or part of a liver,
798	798	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
799	799	paragraph shall take effect on the day the secretary of revenue certifies to
800	800	the director of the budget that the cost for the department of revenue of
801	801	modifications to the automated tax system for the purpose of
802	802	implementing this paragraph will not exceed $20,000.
803	803	(xxii) For taxable years beginning after December 31, 2012, and
804	804	ending before January 1, 2017, the amount of net gain from the sale of: (1)
805	805	Cattle and horses, regardless of age, held by the taxpayer for draft,
806	806	breeding, dairy or sporting purposes, and held by such taxpayer for 24
807	807	1
808	808	2
809	809	3
810	810	4
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849	849	43 SB 39 11
850	850	months or more from the date of acquisition; and (2) other livestock,
851	851	regardless of age, held by the taxpayer for draft, breeding, dairy or
852	852	sporting purposes, and held by such taxpayer for 12 months or more from
853	853	the date of acquisition. The subtraction from federal adjusted gross income
854	854	shall be limited to the amount of the additions recognized under the
855	855	provisions of subsection (b)(xix) attributable to the business in which the
856	856	livestock sold had been used. As used in this paragraph, the term
857	857	"livestock" shall not include poultry.
858	858	(xxiii) For all taxable years beginning after December 31, 2012,
859	859	amounts received under either the Overland Park, Kansas police
860	860	department retirement plan or the Overland Park, Kansas fire department
861	861	retirement plan, both as established by the city of Overland Park, pursuant
862	862	to the city's home rule authority.
863	863	(xxiv) For taxable years beginning after December 31, 2013, and
864	864	ending before January 1, 2017, the net gain from the sale from Christmas
865	865	trees grown in Kansas and held by the taxpayer for six years or more.
866	866	(xxv) For all taxable years commencing after December 31, 2020,
867	867	100% of global intangible low-taxed income under section 951A of the
868	868	federal internal revenue code of 1986, before any deductions allowed
869	869	under section 250(a)(1)(B) of such code.
870	870	(xxvi) (1) For all taxable years commencing after December 31,
871	871	2020, the amount of any interest expense paid or accrued in the current
872	872	taxable year and disallowed as a deduction pursuant to section 163(j) of
873	873	the federal internal revenue code.
874	874	(2) For purposes of this paragraph, an interest expense is considered
875	875	paid or accrued only in the first taxable year the deduction would have
876	876	been allowable pursuant to section 163 of the federal internal revenue code
877	877	if the limitation pursuant to section 163(j) of the federal internal revenue
878	878	code did not exist.
879	879	(3) For tax year 2021, an amount equal to the sum of any interest
880	880	expenses paid or accrued in tax years 2018, 2019 and 2020 less the sum of
881	881	amounts allowed as a deduction pursuant to section 163 of the federal
882	882	internal revenue code in tax years 2018, 2019 and 2020.
883	883	(xxvii) For taxable years commencing after December 31, 2020, the
884	884	amount disallowed as a deduction pursuant to section 274 of the federal
885	885	internal revenue code of 1986 for meal expenditures shall be allowed to
886	886	the extent such expense was deductible for determining federal income tax
887	887	and was allowed and in effect on December 31, 2017.
888	888	(xxviii) For all taxable years beginning after December 31, 2021: (1)
889	889	The amount contributed to a first-time home buyer savings account
890	890	pursuant to K.S.A. 2024 Supp. 58-4903, and amendments thereto, in an
891	891	amount not to exceed $3,000 for an individual or $6,000 for a married
892	892	couple filing a joint return; or (2) amounts received as income earned from
893	893	1
894	894	2
895	895	3
896	896	4
897	897	5
898	898	6
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932	932	40
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935	935	43 SB 39 12
936	936	assets in a first-time home buyer savings account. For all taxable years
937	937	beginning after December 31, 2022, contributions made to a first-time
938	938	home buyer savings account pursuant to subparagraph (1) on and after
939	939	January 1 but prior to the date required for filing a return pursuant to
940	940	K.S.A. 79-3221, and amendments thereto, of the successive taxable year
941	941	may be elected by the taxpayer to apply to the prior taxable year if such
942	942	election is made at the time of filing the return. No contribution shall be
943	943	used as a modification pursuant to subparagraph (1) in more than one
944	944	taxable year.
945	945	(xxix) For taxable years beginning after December 31, 2017, for an
946	946	individual taxpayer who carried back federal net operating losses arising in
947	947	a taxable year beginning after December 31, 2017, and before January 1,
948	948	2021, pursuant to section 172(b)(1) of the federal internal revenue code as
949	949	amended by the coronavirus aid, relief, and economic security act
950	950	(CARES act), the amount of such federal net operating loss carryback for
951	951	each applicable year. If the amount of such federal net operating loss
952	952	carryback exceeds the taxpayer's Kansas adjusted gross income for such
953	953	taxable year, the amount thereof that exceeds such Kansas adjusted gross
954	954	income may be carried forward as a subtraction modification in the
955	955	following taxable year or years until the total amount of such federal net
956	956	operating loss carryback has been deducted, except that no such unused
957	957	amount shall be carried forward for deduction as a subtraction
958	958	modification after the 20
959	959	th
960	960	taxable year following the taxable year of the
961	961	net operating loss. Notwithstanding any other provision of law to the
962	962	contrary, an extension of time shall be allowed for a claim for refund or
963	963	amended return for tax years 2018, 2019 or 2020 limited to the application
964	964	of the provisions of this paragraph and such claim for refund or amended
965	965	return must be filed on or before April 15, 2025.
966	966	(xxx) For all taxable years beginning after December 31, 2024: (1)
967	967	The amount contributed to an adoption savings account pursuant to K.S.A.
968	968	2024 Supp. 38-2503, and amendments thereto, in an amount not to exceed
969	969	$6,000 for an individual or $12,000 for a married couple filing a joint
970	970	return; or (2) amounts received as income earned from assets in an
971	971	adoption savings account.
972	972	(xxxi) For taxable years commencing after December 31, 2024, the
973	973	amount of any net gain from the sale of specie, as defined in section 2, and
974	974	amendments thereto, except the sale of specie as a taxable distribution
975	975	from any retirement plan account that holds specie.
976	976	(d) There shall be added to or subtracted from federal adjusted gross
977	977	income the taxpayer's share, as beneficiary of an estate or trust, of the
978	978	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
979	979	amendments thereto.
980	980	(e) The amount of modifications required to be made under this
981	981	1
982	982	2
983	983	3
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1020	1020	40
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1023	1023	43 SB 39 13
1024	1024	section by a partner which relates to items of income, gain, loss, deduction
1025	1025	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
1026	1026	amendments thereto, to the extent that such items affect federal adjusted
1027	1027	gross income of the partner.
1028	1028	Sec. 8. K.S.A. 2024 Supp. 79-32,117 is hereby repealed.
1029	1029	Sec. 9. This act shall take effect and be in force from and after its
1030	1030	publication in the statute book.
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