The Health Care Sharing Ministries Tax Deduction Act introduces a subtraction modification for Kansas income tax, allowing qualified individuals to deduct the total amount of qualified health care sharing expenses from their federal adjusted gross income. Additionally, any health care share received and used for medical expenses will not be taxed as income. The bill defines key terms such as "qualified individual" and "qualified health care sharing expenses," and sets requirements for health care sharing ministries to qualify for the tax deduction, including being a nonprofit organization and providing financial assistance among members. The existing section of K.S.A. 2025 Supp. 79-32,117 is amended to incorporate these changes, while the previous version is repealed.

Moreover, the bill amends various provisions related to Kansas income tax modifications, introducing new subtractions from federal adjusted gross income for contributions to first-time home buyer and adoption savings accounts, as well as income earned from these accounts. Taxpayers can also apply contributions made in the current year to the prior taxable year if elected at the time of filing. The bill includes provisions for the treatment of federal net operating losses and specifies the timeline for claims related to these modifications. Overall, the changes aim to provide tax relief and incentives for specific savings accounts while simplifying tax regulations, with the act taking effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32