Revenue Ruling 12-82-1
Corporate Income Tax
Establishment of facility in a location prior to enterprise zone designation
INCOME TAX - JOB EXPANSION CREDIT ACT OF 1976.
ESTABLISHING FACILITY IN AREA PRIOR TO DESIGNATION OF AREA AS ENTERPRISE ZONE DOES NOT ENTITLE TAXPAYER TO A CREDIT FOR ESTABLISHING FACILITY IN AN ENTERPRISE ZONE.
Advice has been requested whether a taxpayer is entitled to compute the credit allowed underrate Job Expansion and Investment Credit Act of 1976 under the provisions of subsection (d) of KSA 1981 Supp. 79-32,153, as amended, when an area in which the taxpayer established and commenced operations at a new business facility is designated as an enterprise zone subsequent to such establishment and commencement of business operations.
Subsection (d) of KSA 1981 Supp. 79-32,153, as amended provides:
"The credit allowed by subsection (a) for any taxpayer who
establishes a new business facility within an enterprise zone
shall be a portion of the income tax, _" (Emphasis supplied)
It is the position of the Kansas Department of Revenue that established and commencement of a business in a geographical area prior to the time that the geographical area is designated an enterprise zone fails to satisfy the literal requirements of subsection (d) and, thus, does not entitle the taxpayer to compute the amount of credit allowed under the Job Expansion and Investment Credit Act of 1976 pursuant to that subsection's provisions. The taxpayer would be entitled to compute the credit under the provisions of subsection ( c ) if the facility was established on or after January 1 1982, and if the other provisions of the Job Expansion and Investment Credit Act of 1976 are satisfied.
All references to KSA 1981 Supp. 79-32,153 within this ruling are to that section as it was amended by section 12 of chapter 75 of the 1982 Kansas Session Laws.
MICHAEL LENNEN DATE
Secretary of Revenue
Return to KSA Listing