Enacting the insurance savings account act, allowing individuals and corporations to establish insurance savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications under the Kansas income tax act.

HB 2430 creates "insurance savings accounts" in Kansas, allowing individuals and corporations to save money tax-advantagedly for insurance costs. Account holders can use funds to pay insurance premiums and deductibles for qualifying coverage (like auto or home insurance) starting January 1, 2027, with annual contribution limits of $6,000 for individuals, $12,000 for married couples, and $25,000 for corporations. Withdrawals for non-eligible expenses trigger tax recapture, adding the amount to Kansas adjusted gross income. The bill modifies Kansas income tax rules to allow these accounts as a deduction, while financial institutions aren’t required to track account usage or verify eligible expenses.