The "Insurance Savings Account Act" establishes designated savings accounts for individuals and corporations to cover eligible insurance-related expenses, such as premiums and deductibles. The bill sets annual contribution limits at $6,000 for individuals, $12,000 for married couples filing jointly, and $25,000 for corporations. Account holders are responsible for maintaining documentation of eligible expenses and reporting account information to the state annually. Financial institutions are not required to track account usage or determine eligibility for tax modifications, and specific guidelines are provided for the treatment of account funds upon the death of an account holder. The act is set to take effect on January 1, 2026.

In addition to the Insurance Savings Account provisions, the bill modifies the Kansas tax code by allowing contributions to adoption savings accounts and insurance savings accounts, with the same contribution limits, starting from taxable years after December 31, 2024, and December 31, 2025, respectively. It also outlines adjustments to federal adjusted gross income, including the treatment of various income types and the carryback of federal net operating losses. The bill introduces new deductions for taxable years beginning after December 31, 2020, and repeals certain existing statutes. Overall, the legislation aims to provide tax relief and clarify the treatment of specific savings accounts and income types within the Kansas tax framework.

Statutes affected:
As Introduced: 79-32
As introduced: 79-32