Opinion Letter

Letter Number:O-2002-011
Tax Type:Corporate Income Tax; Individual Income Tax
Brief Description:High Performance Incentive Program (HPIP) credit allowed against total tax liability.
Keywords:
Approval Date:05/21/2002



Body:
Office of Policy & Research


May 21, 2002



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Dear XXXXX:

Thank you for your letter regarding whether the HPIP credit is limited when it flows through from an S Corporation to a shareholder.

K.S.A. 79-32,160a(e) provides:

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May 21, 2002
The HPIP credit shall be allowed against the taxpayer’s tax liability, no matter what type of income the tax liability was generated from. Therefore, if an S corporation (or other flow through entity) should qualify for an HPIP credit, that credit shall flow to the shareholders (partners, members) to be claimed on that shareholders return. Should the shareholder have other income besides that generated from the S corporation that generated the HPIP credit, the HPIP credit shall be allowed against the shareholder’s TOTAL Kansas tax liability.

If we may be of further assistance, please contact us at your earliest convenience.

Sincerely,



Kathleen M. Smith
Tax Specialist, Office of Policy and Research


Date Composed: 05/31/2002 Date Modified: 05/31/2002