40-2246.Same; employer income tax credit,computation of amount, reduction of deductions, election to claim, refunds; noinclusion of employer expenses in employee income; application date.(a) A credit against the taxes otherwise due under the Kansas income tax actshall be allowed to an employer for amounts paid during the taxable year forpurposes of this act on behalf of an eligible employee as defined in K.S.A.40-2239 and amendments thereto to provide health insurance or care andamounts contributed to health savings accounts of eligible coveredemployees.
(b) (1) For employers that have established a small employer healthbenefit plan after December 31, 1999, but prior to January 1, 2005, theamount of the credit allowed by subsection (a) shall be $35 permonth per eligible covered employee or 50% of the total amount paid by theemployer during the taxable year, whichever is less, for the first twoyears of participation. In the third year, the credit shall be equal to75% of the lesser of $35 per month per employee or 50% of the total amountpaid by the employer during the taxable year. In the fourth year, thecredit shall be equal to 50% of the lesser of $35 per month per employee or50% of the total amount paid by the employer during the taxable year. Inthe fifth year, the credit shall be equal to 25% of the lesser of $35 permonth per employee or 50% of the total amount paid by the employer duringthe taxable year. For the sixth and subsequent years, no credit shall beallowed.
(2) For employers that have established a small employer health benefitplan or made contributions to a health savings account of an eligible coveredemployee after December 31, 2004, the amount of credit allowed by subsection(a) shall be $70 per month per eligible covered employee for the first 12months of participation, $50 per month per eligible covered employee for thenext 12 months of participation and $35 per eligible covered employee for thenext 12 months of participation. After 36 months of participation, no creditshall be allowed.
(c) If the credit allowed by this section is claimed, the amount of anydeduction allowable under the Kansas income tax act for expenses describedin this section shall be reduced by the dollar amount of the credit. Theelection to claim the credit shall be made at the time of filing the taxreturn in accordance with law. If the credit allowed by this sectionexceeds the taxes imposed under the Kansas income tax act for the taxableyear, that portion of the credit which exceeds those taxesshall be refunded to the taxpayer.
(d) Any amount of expenses paid by an employer under this act shall notbe included as income to the employee for purposes of the Kansas income taxact. If such expenses have been included in federal taxable income of theemployee, the amount included shall be subtracted in arriving at statetaxable income under the Kansas income tax act.
(e) The secretary of revenue shall promulgate rules and regulations tocarry out the provisions of this section.
(f) This section shall apply to all taxable years commencing afterDecember 31, 1999.
History: L. 1990, ch. 157, § 8;L. 1999, ch. 110, § 4;L. 2005, ch. 118, § 4; July 1.
40-2246.Same; employer income tax credit,computation of amount, reduction of deductions, election to claim, refunds; noinclusion of employer expenses in employee income; application date.(a) A credit against the taxes otherwise due under the Kansas income tax actshall be allowed to an employer for amounts paid during the taxable year forpurposes of this act on behalf of an eligible employee as defined in K.S.A.40-2239 and amendments thereto to provide health insurance or care andamounts contributed to health savings accounts of eligible coveredemployees.
(b) (1) For employers that have established a small employer healthbenefit plan after December 31, 1999, but prior to January 1, 2005, theamount of the credit allowed by subsection (a) shall be $35 permonth per eligible covered employee or 50% of the total amount paid by theemployer during the taxable year, whichever is less, for the first twoyears of participation. In the third year, the credit shall be equal to75% of the lesser of $35 per month per employee or 50% of the total amountpaid by the employer during the taxable year. In the fourth year, thecredit shall be equal to 50% of the lesser of $35 per month per employee or50% of the total amount paid by the employer during the taxable year. Inthe fifth year, the credit shall be equal to 25% of the lesser of $35 permonth per employee or 50% of the total amount paid by the employer duringthe taxable year. For the sixth and subsequent years, no credit shall beallowed.
(2) For employers that have established a small employer health benefitplan or made contributions to a health savings account of an eligible coveredemployee after December 31, 2004, the amount of credit allowed by subsection(a) shall be $70 per month per eligible covered employee for the first 12months of participation, $50 per month per eligible covered employee for thenext 12 months of participation and $35 per eligible covered employee for thenext 12 months of participation. After 36 months of participation, no creditshall be allowed.
(c) If the credit allowed by this section is claimed, the amount of anydeduction allowable under the Kansas income tax act for expenses describedin this section shall be reduced by the dollar amount of the credit. Theelection to claim the credit shall be made at the time of filing the taxreturn in accordance with law. If the credit allowed by this sectionexceeds the taxes imposed under the Kansas income tax act for the taxableyear, that portion of the credit which exceeds those taxesshall be refunded to the taxpayer.
(d) Any amount of expenses paid by an employer under this act shall notbe included as income to the employee for purposes of the Kansas income taxact. If such expenses have been included in federal taxable income of theemployee, the amount included shall be subtracted in arriving at statetaxable income under the Kansas income tax act.
(e) The secretary of revenue shall promulgate rules and regulations tocarry out the provisions of this section.
(f) This section shall apply to all taxable years commencing afterDecember 31, 1999.
History: L. 1990, ch. 157, § 8;L. 1999, ch. 110, § 4;L. 2005, ch. 118, § 4; July 1.
40-2246.Same; employer income tax credit,computation of amount, reduction of deductions, election to claim, refunds; noinclusion of employer expenses in employee income; application date.(a) A credit against the taxes otherwise due under the Kansas income tax actshall be allowed to an employer for amounts paid during the taxable year forpurposes of this act on behalf of an eligible employee as defined in K.S.A.40-2239 and amendments thereto to provide health insurance or care andamounts contributed to health savings accounts of eligible coveredemployees.
(b) (1) For employers that have established a small employer healthbenefit plan after December 31, 1999, but prior to January 1, 2005, theamount of the credit allowed by subsection (a) shall be $35 permonth per eligible covered employee or 50% of the total amount paid by theemployer during the taxable year, whichever is less, for the first twoyears of participation. In the third year, the credit shall be equal to75% of the lesser of $35 per month per employee or 50% of the total amountpaid by the employer during the taxable year. In the fourth year, thecredit shall be equal to 50% of the lesser of $35 per month per employee or50% of the total amount paid by the employer during the taxable year. Inthe fifth year, the credit shall be equal to 25% of the lesser of $35 permonth per employee or 50% of the total amount paid by the employer duringthe taxable year. For the sixth and subsequent years, no credit shall beallowed.
(2) For employers that have established a small employer health benefitplan or made contributions to a health savings account of an eligible coveredemployee after December 31, 2004, the amount of credit allowed by subsection(a) shall be $70 per month per eligible covered employee for the first 12months of participation, $50 per month per eligible covered employee for thenext 12 months of participation and $35 per eligible covered employee for thenext 12 months of participation. After 36 months of participation, no creditshall be allowed.
(c) If the credit allowed by this section is claimed, the amount of anydeduction allowable under the Kansas income tax act for expenses describedin this section shall be reduced by the dollar amount of the credit. Theelection to claim the credit shall be made at the time of filing the taxreturn in accordance with law. If the credit allowed by this sectionexceeds the taxes imposed under the Kansas income tax act for the taxableyear, that portion of the credit which exceeds those taxesshall be refunded to the taxpayer.
(d) Any amount of expenses paid by an employer under this act shall notbe included as income to the employee for purposes of the Kansas income taxact. If such expenses have been included in federal taxable income of theemployee, the amount included shall be subtracted in arriving at statetaxable income under the Kansas income tax act.
(e) The secretary of revenue shall promulgate rules and regulations tocarry out the provisions of this section.
(f) This section shall apply to all taxable years commencing afterDecember 31, 1999.
History: L. 1990, ch. 157, § 8;L. 1999, ch. 110, § 4;L. 2005, ch. 118, § 4; July 1.
