The Health Care Sharing Ministries Tax Deduction Act introduces a subtraction modification for Kansas adjusted gross income, allowing qualified individuals to deduct their health care sharing expenses from their federal adjusted gross income starting in tax years after December 31, 2026. The maximum deduction is set at $5,000 for individuals and $10,000 for married couples filing jointly. Additionally, any health care share received by qualified individuals for medical expenses will not be taxed as income for Kansas income tax purposes. The bill defines "health care sharing ministry" and establishes criteria for these organizations to qualify for the tax deduction, requiring individuals to be Kansas residents and members of a health care sharing ministry for at least one month during the taxable year.

The bill also amends various provisions related to Kansas income tax regulations, including 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. It allows deductions for qualified health care sharing expenses and benefits received under the federal social security act for taxpayers with adjusted gross incomes of $75,000 or less. Furthermore, the bill repeals K.S.A. 2025 Supp. 79-32,117, indicating a consolidation of tax regulations. Overall, the legislation aims to provide tax relief and incentives for specific groups while simplifying the tax code. The act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32
{As Amended by Senate Committee of the Whole}: 79-32
Enrolled: 79-32