The "Insurance Savings Account Act" establishes designated savings accounts for individuals and corporations to cover eligible insurance-related expenses, including premiums and deductibles. The act defines key terms and sets contribution limits of $6,000 for individuals, $12,000 for married couples, and $25,000 for corporations, with provisions for tax implications if these limits are exceeded. Account holders are required to report their account information annually, while financial institutions are relieved of certain management responsibilities. The Secretary of Revenue will create necessary forms and regulations, and the Commissioner of Insurance will promote the program. The bill also amends existing tax laws to incorporate these accounts, ensuring that withdrawals for non-eligible expenses are subject to tax recapture.

In addition to the insurance savings accounts, the bill modifies the Kansas tax code to allow contributions to adoption savings accounts and insurance savings accounts, with specific contribution limits and exclusions for income earned from these accounts. It also introduces adjustments to federal adjusted gross income, including treatment of contributions and earnings from these accounts, and establishes a framework for handling federal net operating loss carrybacks. The bill proposes new deductions and subtractions from federal taxable income, including depreciation deductions and charitable contributions, while repealing certain existing statutes. Overall, the act aims to enhance tax benefits associated with savings accounts and ensure compliance with federal tax regulations, taking effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32