SB 368 — Enacting the health care sharing ministries tax deduction act to provide a subtraction modification for qualified health care sharing expenses paid by a qualified individual and certain qualified health care shares received by a qualified individual.

SB(xiv) For 368—Am.all taxable years commencing after December 31, 1996, that portion of any income of a bank organized under the laws of this state or any other state, a national banking association organized under the laws of the United States, an association organized under the savings and loan code of this state or any other state, or a federal savings association organized under the laws of the United States, for which an election as an S corporation under subchapter S of the federal internal revenue code is in effect, which accrues to the taxpayer who is a stockholder of such corporation and which is not distributed to the stockholders as dividends of the corporation.

byFor SCW 10 (xiv) For all taxable years commencingbeginning after December 31, 1996,2012, thatand portionending ofbefore anyJanuary income1, of2017, a bank organized under the lawsamount of thismodification state or any other state, a national banking association organized under thethis lawssubsection ofshall theexclude United States, an association organized under the savingsportion and loan code of thisincome state or anyloss otherreported state,on orschedule aE federaland savingsincluded associationon organizedline under the laws of the Unitedtaxpayer's States,form for1040 which an election as an S corporation under subchapter S of the federal internalindividual revenueincome codetax isreturn. in effect, which accrues to the taxpayer who is a stockholder of such corporation and which is not distributed to the stockholders as dividends of the corporation.

For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of modification under this subsection shall exclude the portion of income or loss reported on schedule E and included on line 17 of the taxpayer's form 1040 federal individual income tax return.

(1) A family postsecondary education savings account established under the Kansas postsecondary education savings program or a qualified tuition program established and maintained by another state or agency or instrumentality thereof pursuant to section 529 of the internal revenue code of 1986, as amended, for the purpose of paying the qualified higher education expenses of a designated beneficiary;

75-643 and 75-75-652, 652, and amendmentsSENATE thereto,BILL andNo. the provisions of such sections are hereby incorporated by reference for all purposes thereof.

368—page 8 amendments thereto, and the provisions of such sections are hereby incorporated by reference for all purposes thereof.

(xvi) For all taxable years beginning after December 31, 2004, amounts received by taxpayers who are or were members of the armed forces of the United States, including service in the Kansas army and air national guard, as a recruitment, sign up or retention bonus received by SBsuch 368—Am.taxpayer as an incentive to join, enlist or remain in the armed services of the United States, including service in the Kansas army and air national guard, and amounts received for repayment of educational or student loans incurred by or obligated to such taxpayer and received by such taxpayer as a result of such taxpayer's service in the armed forces of the United States, including service in the Kansas army and air national guard.

by SCW 11 such taxpayer as an incentive to join, enlist or remain in the armed services of the United States, including service in the Kansas army and air national guard, and amounts received for repayment of educational or student loans incurred by or obligated to such taxpayer and received by such taxpayer as a result of such taxpayer's service in the armed forces of the United States, including service in the Kansas army and air national guard.

(2) net income, not including guaranteed payments as defined in section 707(c) of the federal internal revenue code and as reported to the taxpayer from federal schedule K-1,K- 1, (form 1065-B), in box 9, code F or as reported to the taxpayer from federal schedule K-1, (form 1065) in box 4, from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual interest in real estate mortgage investment conduits and net farm rental as determined under the federal internal revenue code and reported from schedule E and on line 17 of the taxpayer's form 1040 federal individual income tax return;

For purposes of this subsection, references to the federal form 1040 and federal schedule C, schedule E, and schedule F, shall be to suchSENATE formBILL andNo. schedules as they existed for tax year 2011 SB 368—Am.

by368—page SCW9 12such form and schedules as they existed for tax year 2011 and as revised thereafter by the internal revenue service.

(xxvi) (1) For all taxable years commencing after December 31, 2020, the amount of any interest expense paid or accrued in the current SBtaxable 368—Am.year and disallowed as a deduction pursuant to section 163(j) of the federal internal revenue code.

by SCW 13 taxable year and disallowed as a deduction pursuant to section 163(j) of the federal internal revenue code.

(xxvii) For taxable years commencing after December 31, 2020, the amount disallowed as a deduction pursuant to section 274 of the federalSENATE internalBILL revenueNo. code of 1986 for meal expenditures shall be allowed to the extent such expense was deductible for determining federal income tax and was allowed and in effect on December 31, 2017.

368—page 10 federal internal revenue code of 1986 for meal expenditures shall be allowed to the extent such expense was deductible for determining federal income tax and was allowed and in effect on December 31, 2017.

If the amount of such federal net operating loss carryback exceeds the taxpayer's Kansas adjusted gross income for such taxable year, the amount thereof that exceeds such Kansas adjusted gross income may be carried forward as a subtraction modification in the following taxable year or years until the total amount of such federal net operating loss carryback has been deducted, except that no such unused amount shall be carried forward for deduction as a subtraction modification after the 20 taxablethtaxable year following the taxable year of the SBnet 368—Am.operating loss.

byNotwithstanding SCWany 14other netprovision operatingof loss.law to the contrary, an extension of time shall be allowed for a claim for refund or amended return for tax years 2018, or 2020 limited to the application of the provisions of this paragraph and such claim for refund or amended return must be filed on or beforeApril 15, 2025.

Notwithstanding any other provision of law to the contrary, an extension of time shall be allowed for a claim for refund or amended return for tax years 2018, 2019 or 2020 limited to the application of the provisions of this paragraph and such claim for refund or amended return must be filed on or beforeApril 15, 2025.

(1) Amounts of qualified health care sharing expenses paid by a qualified individual taxpayer during the taxable year as provided in section 3, and amendments thereto, to the extent that such amounts are not already deducted on the taxpayer's federal income tax return for such taxable year when determining the taxpayer's federal adjusted gross income or are not otherwise subtracted or deducted from the taxpayer's federal adjusted gross income{income and in an amount not to exceed $5,000 for an individual or $10,000 for a married couple filing a joint return};return;

(d) ThereSENATE shallBILL beNo. added to or subtracted from federal adjusted gross income the taxpayer's share, as beneficiary of an estate or trust, of the Kansas fiduciary adjustment determined under K.S.A.

368—page 11 (d) There shall be added to or subtracted from federal adjusted gross income the taxpayer's share, as beneficiary of an estate or trust, of the Kansas fiduciary adjustment determined under K.S.A.

I hereby certify that the above ILLoriginated in the SENATE, and passed that body _________________________ _________________________ President of the Senate.

_________________________ Secretary of the Senate.

Passed the H OUSE ________________________ _________________________ Speaker of the House.

_________________________ Chief Clerk of the House.

A PPROVED ____________________________ _________________________ Governor.