K.S.A. 40-2246 allows an income tax credit to those employers that make contributions to a health savings account of an eligible covered employee after 12/31/2004. The credit is $70 per month per eligible covered employee for the first 12 months of participation, $50 per month per eligible covered employee for the next 12 months of participation and $35 per month per eligible covered employee for the next 12 months of participation.
Any small employer (defined by K.S.A. 40-2209d) having between 2 and 50 employees may establish a health benefit plan for the purpose of providing a plan as described under K.S.A. 40-2240 covering such employer’s eligible employees and such employees’ family members. For plans established prior to 1/1/2005, a certificate issued by the Commissioner of Insurance entitling a “small employer” to claim the tax credit authorized by K.S.A. 40-2246 must have been obtained.
For tax year 2013, and all tax years thereafter, credits shall be available to only corporations subject to the Kansas corporate income tax (i.e., C corporations). Credits are not available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.
K-57 Small Employer Healthcare Credit