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.
SB 368 would allow Kansas residents who are members of qualifying health care sharing ministries to deduct their membership expenses (including contributions and administrative fees) from their Kansas state income tax. It also ensures that money received from these ministries for medical expenses isn't treated as taxable income in Kansas. To qualify, residents must be members for at least one month during the tax year, and the deduction only applies to amounts not already deducted on their federal tax return. The bill creates this tax benefit for Kansas residents using these specific nonprofit health-sharing organizations, which operate under federal tax-exempt status and require members to share medical costs voluntarily. The law would take effect for tax years beginning after December 31, 2026.
HB 2602 establishes a portable benefit plan system for independent contractors in Kansas, directly affecting contractors (e.g., app-based workers) and hiring companies. The bill requires third-party providers (like banks or investment firms) to offer plans covering health, retirement, disability, or life insurance, with contributions allowed from contractors, hiring parties, or voluntary withholdings from contractor pay. Kansas income tax law would allow a subtraction modification for these contributions, reducing taxable income. The bill is currently in committee review (introduced January 2026, referred to Insurance Committee) and does not change employment classification rules.
HB 2469 expands a tax credit for railroad track maintenance in Kansas, allowing eligible businesses to apply the credit against income tax, premium taxes, or privilege fees - not just income tax as before. It directly affects class II/III railroads and rail siding owners (eligible taxpayers), as well as their customers (e.g., businesses using short-line rail) and vendors (e.g., maintenance service providers). Unused credits can be transferred to other businesses paying those specific taxes within five years, with a cap of $5,000 per mile of track or $5,000 per rail siding annually, and a total annual limit of $8.72 million. The bill changes how these credits are applied and shared, making them more flexible for qualifying rail-related businesses.
Kansas would join a federal tax credit program allowing individual taxpayers to deduct contributions to scholarship organizations supporting low-income students. The bill increases the tax credit percentage from 70% to 75% for contributions made after 2022 and raises the state's annual credit limit from $10 million to $20 million (with a potential maximum of $30 million). If credits claimed approach 75% of the annual limit, the cap automatically increases for the next year. This directly affects Kansas residents who donate to qualifying scholarship organizations, providing a larger tax incentive for such contributions.
HB 2445 creates a Kansas tax deduction for residents who pay expenses to health care sharing ministries (nonprofit organizations that facilitate voluntary medical expense sharing among members with shared beliefs, not insurance). It allows eligible Kansas taxpayers to subtract qualified health care sharing expenses (including membership fees and administrative costs) from their state income tax calculation. The bill also specifies that money received from these ministries to cover medical costs is not considered taxable income for Kansas tax purposes. This applies only to Kansas residents who are members of qualifying ministries for at least one month during the tax year, effective for tax years beginning after December 31, 2026.
SB 311 eliminates Kansas state income tax on specific types of overtime pay earned by workers. It modifies Kansas tax law to exclude "certain qualified overtime compensation" from taxable income when calculating state adjusted gross income. This means eligible workers will not pay state income tax on qualifying overtime earnings, directly affecting Kansas residents who receive this type of compensation. The bill amends K.S.A. 2025 Supp. 79-32,117 to add this exclusion as a subtraction modification.
HB 2235 integrates the Technology-Enabled Fiduciary Financial Institutions (TEFFI) Act into Kansas’ state banking code, directly affecting TEFFIs - digital financial institutions managing alternative assets like private equity funds. Key changes include reducing TEFFI charter application fees, requiring reports to the state bank commissioner, allowing digital certificates for asset ownership, and expanding the TEFFI income tax credit to include Kansas nonprofit corporations as qualified charities. The bill clarifies definitions for terms like "alternative asset custody account" and specifies that TEFFIs will be supervised by the state bank commissioner. These provisions aim to modernize regulatory oversight while streamlining operations for TEFFIs and supporting charitable giving through tax incentives.
SB 25 creates "insurance savings accounts" for Kansas residents and businesses, allowing them to save tax-advantaged funds specifically for property and casualty insurance costs. Account holders can contribute up to $6,000 annually (or $12,000 for joint filers, $25,000 for corporations) to pay insurance premiums and deductibles, with contributions excluded from taxable income. Funds withdrawn for non-eligible expenses (like general living costs) must be added back to taxable income. Accounts must be held at approved banks or credit unions, and users must maintain documentation for all eligible insurance expenses.
SB 283 lowers Kansas individual income tax rates starting January 1, 2026, and ends multiple tax credit programs. It discontinues credits for the High Performance Incentive Program, Kansas Affordable Housing Tax Credit, and payroll tax benefits from the Promoting Employment Across Kansas Act. The bill also repeals other targeted credits, including those for environmental compliance, agritourism liability insurance, and abandoned well plugging. These changes directly affect Kansas taxpayers and businesses that previously claimed these specific tax credits.
