Notice

Notice Number:09-09
Tax Type:Corporate Income Tax; Individual Income Tax; Privilege
Brief Description:Reduction of Tax Credits by 2009 HB 2365
Keywords:
Approval Date:06/29/2009


Body:
Kansas Department of Revenue
Office of Policy and Research

Notice 09-09

2009 HB 2365
Reduction of Tax Credits

HB 2365 passed by the 2009 Kansas Legislature imposed a 10% reduction on various tax credits. The credit reduction which enables the State of Kansas to meet its budgetary needs is as follows:

Nonrefundable Tax Credits
Various tax credits allowed in tax years 2009 and 2010 (as specified below) against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes Annotated, shall not exceed the lesser of:
This credit reduction will occur on the applicable credit schedules when filed with the appropriate tax return for tax years 2009 and 2010.

The credits affected by this credit reduction include:

Adoption CreditSchedule K-47K.S.A. 79-32,200
Agritourism Liability Insurance CreditSchedule K-33K.S.A. 74-50,173
Alternative-Fueled Tax CreditSchedule K-62K.S.A. 79-32,202
Angel Investor CreditSchedule K-30K.S.A. 74-8133
Agricultural Interest Reduction Loan CreditSchedule K-51K.S.A. 79-32,181a
Assistive Technology Contribution CreditSchedule K-42K.S.A. 65-7107
Biomass-To-Energy Plant CreditSchedule K-79K.S.A. 79-32,234
*Business and Job Development CreditSchedule K-34K.S.A. 79-32,153
K.S.A. 79-32,160a
Center for Entrepreneurship CreditSchedule K-31K.S.A. 74-99c09
Declared Disaster Capital Investment CreditSchedule K-87K.S.A. 79-32,262
Disabled Access CreditSchedule K-37K.S.A. 79-1117
K.S.A. 79-32,176
K.S.A. 79-32,177
Electric Cogeneration Facility CreditSchedule K-83K.S.A. 79-32,246
Environmental Compliance CreditSchedule K-81K.S.A. 79-32,222
**High Performance Incentive Program-Investment CreditSchedule K-59K.S.A. 79-32,160a
Higher Education Deferred Maintenance Tax Credit-Designated UniversitiesK.S.A. 79-32,261
Integrated Coal Gasification CreditSchedule K-80K.S.A. 79-32,239
Law Enforcement Training Center CreditSchedule K-72K.S.A. 79-32,242
Mathematics and Science Teacher Employment CreditSchedule K-71K.S.A. 79-32,215
National Guard Employer Health Insurance CreditSchedule K-54K.S.A. 79-32,213
National Guard & Reserve Employer CreditSchedule K-74K.S.A. 79-32,244
Nitrogen Fertilizer Plant CreditSchedule K-78K.S.A. 79-32,229
Petroleum Refinery CreditSchedule K 73K.S.A. 79-32,218
Plugging an Abandoned Oil or Gas Well CreditSchedule K-39K.S.A. 79-32,207
Qualifying Pipeline CreditSchedule K77K.S.A. 79-32,224
Research and Development CreditSchedule K-53K.S.A. 79-32,182b
Single City Port Authority CreditSchedule K-76K.S.A. 79-32,212
Storage and Blending Equipment CreditSchedule K-82K.S.A. 79-32,252
Swine Facility Improvement CreditSchedule K-38K.S.A. 79-32,204
Temporary Assistance to Families Contribution CreditSchedule K-61K.S.A. 79-32,200
Venture Capital CreditSchedule K-55K.S.A. 74-8205

* For a taxpayer that has earned an enhanced Business and Job Development Credit under K.S.A. 79-32,160a prior to tax year 2009, any reduction in that credit in tax years 2009 and 2010 may be carried forward and claimed in tax year 2011.

**Any reduction in the investment credit claimed in tax years 2009 and 2010 may be carried forward and claimed in tax year 2011, for any taxpayer that has received a letter from the Department of Commerce that is dated prior to June 1, 2009 certifying the taxpayer as qualifying under the High Performance Incentive Program. If however the letter certifying the taxpayer is dated on or after June 1, 2009 and the investment becomes operational during tax year 2009 or tax year 2010, credits claimed in tax year 2009 or tax year 2010 will be reduced, and the reduction cannot be carried forward.

Refundable Tax Credits
Any credit allowed in tax years 2009 and 2010 (as specified below) against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes Annotated, shall not exceed:
This credit reduction will occur on the applicable credit schedules when filed with the appropriate tax return for tax years 2009 and 2010.

The following credits will be limited to 90% of the tax credit for tax years 2009 and 2010:

Business Machinery and Equipment CreditSchedule K-64K.S.A. 79-32,206
Child Day Care Assistance CreditSchedule K-56K.S.A. 79-32,190
Community Service Contribution CreditSchedule K-60K.S.A. 79-32,196
K.S.A. 79-32,197
Declared Disaster Capital Investment CreditSchedule K-87K.S.A. 79-32,262
Disabled Access CreditSchedule K-37K.S.A. 79-32,176
Higher Education Deferred Maintenance Tax Credit-Community Colleges and Technical CollegesK.S.A. 79-32,261
Historic Site Contribution CreditSchedule K-75K.S.A. 79-32,211a
Individual Development Account CreditSchedule K-68K.S.A. 74-50,208
Regional Foundation CreditSchedule K-32K.S.A. 74-50,154
Small Employer Health Care CreditSchedule K-57K.S.A. 40-2246
Telecommunications and Railroad CreditSchedule K-36K.S.A. 79-32,210
K.S.A. 79-32,206

Historic Preservation Tax Credit
In addition, this legislation imposes a $3.75M statutory cap on the Historic Preservation Tax Credit for FY 2010 and FY 2011. The Kansas Department of Revenue and the Kansas State Historical Society have established Guidelines for Implementation of Section 6, 2009 House Bill 2365-Amendments to K.S.A. 79-32,211.

Film Production Credit
The film production credit will be suspended for a period of two years beginning with tax years 2009 and 2010. Any film production credits that have been earned prior to tax year 2009 may be carried forward to tax year 2011. No film production credits will be allowed against tax years 2009 and 2010 tax liabilities.

Taxpayer Assistance
Additional copies of this notice, forms or publications are available from our web site, www.ksrevenue.org. If you have questions, please contact:
Taxpayer Assistance Center
Kansas Department of Revenue
915 SW Harrison St., 1st Floor
Topeka, KS 66612-1588
Phone: 785-368-8222
Hearing Impaired TTY: 785-296-6461
Fax: 785-291-3614


Guidelines for Implementation of Historical Tax Credits.docxGuidelines for Implementation of Historical Tax Credits.docx


SCANNED ATTACHMENTS/DOCUMENTS


Date Composed: 06/29/2009 Date Modified: 07/06/2009