The "Health Care Sharing Ministries Tax Deduction Act" introduces a subtraction modification for Kansas income tax, allowing qualified individuals to deduct their total qualified health care sharing expenses from their federal adjusted gross income. Additionally, any qualified health care shares received and used for medical expenses will not be considered taxable income for Kansas tax purposes. The bill defines key terms related to health care sharing ministries and outlines the criteria these organizations must meet to qualify for the tax benefits. It also amends K.S.A. 2025 Supp. 79-32,117 to incorporate these new provisions while repealing the existing section.

In addition to the health care sharing provisions, the bill amends various aspects of Kansas state income tax calculations, introducing new subtractions from federal adjusted gross income for contributions to first-time home buyer savings accounts, adoption savings accounts, and qualified health care sharing expenses. Taxpayers will also have the option to apply contributions made in the current year to the prior taxable year when filing. The bill aims to provide tax relief and clarity for taxpayers, particularly those involved in specific savings programs or facing financial challenges due to federal tax regulations, and will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32