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KS Notice 12-04 Kansas Individual Income Tax 2012-07-01

Which Kansas income tax credits and which subtraction modification did HB 2117 repeal starting in 2013?

Short answer: Kansas Notice 12-04 explains that 2012 House Bill 2117 repealed certain income tax credits beginning in tax year 2013, so after tax year 2012 they are no longer available. Section 40 of the Bill repeals the credit for child and dependent care expenses (K.S.A. 79-32,111a, Form K-40), the credit for expenditures to provide disabled access (K.S.A. 79-32,176, Schedule K-37), the credit for adoption expenses (K.S.A. 79-32,202, Schedule K-47), the credit for providing health insurance for a Kansas National Guard member (K.S.A. 79-32,213, Schedule K-54), and the credit for contributions to the Kansas Law Enforcement Training Center (K.S.A. 79-32,242, Schedule K-72). The Bill also limits many other income tax credits to C corporations (see Notice 12-05). Separately, Section 12 repeals the subtraction modification in K.S.A. 79-32,117(c)(xvi) that had allowed up to $1,000 of long-term care insurance payments to be subtracted. The notice bears no printed issue date; it is dated to mid-2012 by its position in the 2012 notice sequence (after Notice 12-01, June 11, 2012, and before Notice 12-15, July 19, 2012).

Apply this to your situation

This page answers the general question as of 2012. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2012
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice: public guidance the Department issues to explain Kansas tax law, most often a newly enacted statute. It states the Department's general interpretation and administration of the law; it does not have the force of law and is not a private ruling issued to any one taxpayer. It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Kansas Notice 12-04 explains that 2012 House Bill 2117 repealed several income tax credits and one subtraction modification beginning in tax year 2013. After tax year 2012, the listed credits are no longer available.

Credits repealed (Section 40 of the Bill):

  1. Credit for child and dependent care expenses (repealing K.S.A. 79-32,111a; Form K-40).
  2. Credit for expenditures to provide disabled access (repealing K.S.A. 79-32,176; Schedule K-37).
  3. Credit for adoption expenses (repealing K.S.A. 79-32,202; Schedule K-47).
  4. Credit for providing health insurance for a Kansas National Guard member (repealing K.S.A. 79-32,213; Schedule K-54).
  5. Credit for contributions to the Kansas Law Enforcement Training Center (repealing K.S.A. 79-32,242; Schedule K-72).

The notice adds that HB 2117 also limits many other income tax credits to C corporations -- see Notice 12-05.

Subtraction modification repealed. Beginning in tax year 2013, Section 12 repeals the subtraction modification in K.S.A. 79-32,117(c)(xvi) that allowed payments for long-term care insurance (up to $1,000) to be subtracted from federal adjusted gross income.

Date note. The notice bears no printed issue date; it is dated to mid-2012 by its position in the 2012 notice sequence (after Notice 12-01, June 11, 2012, and before Notice 12-15, July 19, 2012).

What this means for you

Individuals and families

  • Starting with tax year 2013, you can no longer claim the child and dependent care, disabled access, adoption, National Guard health insurance, or Law Enforcement Training Center credits.
  • The up-to-$1,000 long-term care insurance subtraction is also gone beginning in 2013.

Tax preparers

  • Tax year 2012 is the last year for these credits and the long-term care insurance subtraction.
  • Many other credits become C-corporation-only in 2013 -- review Notice 12-05.

Common questions

Which credits were fully repealed? Child and dependent care, disabled access, adoption, Kansas National Guard health insurance, and Kansas Law Enforcement Training Center contributions.

When did the repeals take effect? Beginning in tax year 2013; tax year 2012 was the last year to claim them.

What subtraction modification was repealed? The up-to-$1,000 subtraction for long-term care insurance payments under K.S.A. 79-32,117(c)(xvi).

Where are the credits that became C-corporation-only? Listed in Notice 12-05.

Citations and references

  • K.S.A. 79-32,111a -- child and dependent care credit, repealed (Section 40).
  • K.S.A. 79-32,176 -- disabled access credit, repealed (Section 40).
  • K.S.A. 79-32,202 -- adoption credit, repealed (Section 40).
  • K.S.A. 79-32,213 -- Kansas National Guard employer health insurance credit, repealed (Section 40).
  • K.S.A. 79-32,242 -- Kansas Law Enforcement Training Center contribution credit, repealed (Section 40).
  • K.S.A. 79-32,117(c)(xvi) -- long-term care insurance subtraction (up to $1,000), repealed (Section 12).

Source

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                     NOTICE 12-04

                 CREDITS AND SUBTRACTION MODIFICATION REPEALED

                                   Credits Repealed

 During the 2012 Legislative Session House Bill 2117 was passed and signed into law.

Beginning in tax year 2013, certain credits are repealed. After tax year 2012 the credits listed
below will not be available.

 1.     Credit for child and dependent care expenses. (Section 40, repealing K.S.A. 79-
        32,111a) Claimed directly on Form K-40 / Credit for Child & Dependent Care
        Expenses

 2.     Credit for expenditures to provide disabled access. (Section 40, repealing
        K.S.A. 79-32,176) Claimed on Schedule K-37 / Disabled Access Credit

 3.     Credit for adoption expenses. (Section 40, repealing K.S.A. 79-32,202)
        Claimed on Schedule K-47 / Adoption Credit

 4.     Credit for provision of health insurance for a member of the Kansas National
        Guard. (Section 40, repealing K.S.A. 79-32,213) Claimed on Schedule K-54 /
        National Guard Employer Health Insurance Credit

 5.     Credit for contributions to the Kansas Law Enforcement Training Center.
        (Section 40, repealing K.S.A. 79-32,242) Claimed on Schedule K-72 / Law
        Enforcement Training Center Credit

 In addition to repealing the credits listed above, HB 2117 limits the availability of a

number of other income tax credits to C corporations which pay the corporate income tax. For
more information regarding these credits, please see Notice 12-05.

                          Subtraction Modification Repealed

  Beginning in tax year 2013, a subtraction modification has been repealed. Currently,

K.S.A. 79-32,117(c)(xvi) provides payments for long-term care insurance (up to $1,000) may be
subtracted from federal adjusted gross income in determining Kansas adjusted gross income.
Section 12 of HB 2117 repeals this subtraction modification.

                               Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about income tax, please contact:

                           Taxpayer Assistance Center
                          Kansas Department of Revenue
                          915 SW Harrison St., 1st Floor
                            Topeka, KS 66612-1588
                              Phone: 785-368-8222
                               Fax: 785-291-3614

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