Questions and Answers

Identifying Information:Community Service Contribution Credit
Tax Type:Corporate Income Tax; Individual Income Tax; Privilege
Brief Description:Nonprofit contributions to approved community service organizations.
Keywords:
Approval Date:01/27/2003



Body:
Office of Policy & Research

Question and Answer
Community Service Contribution Credit



Question:
May a nonprofit organization make a contribution to an approved community service organization and claim or transfer the community service contribution credit under the Kansas community services program act, K.S.A. 79-32,194 et seq., and amendments thereto?

Answer:
A nonprofit organization may make a contribution to an approved community service organization and if that nonprofit organization is required to file a tax return due to unrelated business income, the nonprofit organization is allowed to claim the community service contribution credit under the Kansas community services program act, K.S.A. 79-32,194 et seq., and amendments thereto.

If the nonprofit organization is not required to file a federal tax return because they have no unrelated business income, the nonprofit organization will not be allowed to take the community service contribution credit under the Kansas community services program act, K.S.A. 79-32,194 et seq., and amendments thereto, BUT can sell, assign, convey or transfer that tax credit to a Kansas tax paying entity as provided for in K.S.A (1999 Supp.) 79-32,197a. The amount received by the nonprofit organization upon the sale or transfer of the tax credit shall be taxable as income for Kansas purposes and therefore will require the nonprofit organization to file a Kansas income tax return reporting this sale.



Date Composed: 01/27/2003 Date Modified: 01/27/2003