Committee on Taxation hears proposal to create Insurance Savings Accounts for property and casualty costs

A Kansas Committee on Taxation hearing on House Bill 2430 centered on a proposal to create Insurance Savings Accounts (ISAs) that would let individuals, married filers and corporations set aside tax-advantaged dollars to pay property and casualty insurance premiums and deductibles.

Mister Severs, the reviser, told the committee the bill would allow accounts at financial institutions beginning Jan. 1, 2027, with contribution limits of $6,000 for individuals, $12,000 for married couples filing jointly and $25,000 for corporations; monies used for non-authorized purposes would be subject to recapture. "Under the bill, individuals and corporations would be eligible to establish insurance savings accounts with certain financial institutions on and after 01/01/2027," he said during the summary presentation.

The bill’s fiscal impact was a central point of contention. Kathleen Smith of the Department of Revenue said the department’s estimate…