Private Letter Ruling

Ruling Number:P-2001-107
Tax Type:Corporate Income Tax
Brief Description:
High Performance Incentive Program (HPIP) credits.
Approval Date:08/28/2001

Office of Policy & Research

August 28, 2001



Thank you for your request for a private letter ruling regarding whether XXXXX is entitled to the High Performance Incentive Program credits set forth in K.S.A. 74-50,132 and K.S.A. 79-32,160a(e) which were originally secured by XXXXX.

K.S.A. 79-32,156(a) provides, Based on the reading of this statute, it specifically states that a credit allowed by K.S.A. 79-32,153 may be transferred to a related taxpayer. K.S.A. 79-32,153 allows an investment credit and job creation credit under the Job Expansion and Investment Credit Act of 1976. K.S.A. 79-32,156(a) does not address any other type of credit, such as the “enhanced” business and job development credit allowed under K.S.A. 79-32,160a or the high performance incentive program investment credit allowed under K.S.A. 79-32,160a(e).

However, K.S.A. 79-32,160a(f), provides:
Therefore a reasonable reading and interpretation of the Act would indicate that the provisions within the original act were meant to apply to the newer provisions in K.S.A. 79-32,160a, thereby allowing a transfer of the credit earned under K.S.A. 79-32,160a(e) to a related taxpayer.

K.S.A. 79-32,154(h) provides the definition of related taxpayer as,
XXXXX may transfer the credits secured through HPIP (K.S.A. 74-50,132 and K.S.A. 79-32,160a(e)) to XXXXX if the following conditions are met:
XXXXX and XXXXX must be considered as “related taxpayers” as defined in K.S.A. 79-32,154(h) (Based on the information you have provided, I am unable to make this determination);
XXXXX must become HPIP certified and continue to be qualified and recertified for each succeeding taxable year; and
XXXXX must sell or lease the qualified business facility to XXXXX.

This is a private letter ruling pursuant to Kansas Administrative Regulation 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this ruling.

If I may be of further assistance, please contact me at your earliest convenience.


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

Date Composed: 10/04/2001 Date Modified: 10/10/2001