Kansas Statutes 79-32,153. Credit against tax for establishment of qualified business facility; conditions; amount; limitations
(a) For taxable years commencing after December 31, 1997, any taxpayer who shall invest in a qualified business facility, as defined in subsection (b) of Kan. Stat. Ann. § 79-32,154, and amendments thereto, and effective for tax years commencing after December 31, 2010, located in an area other than a metropolitan county as defined in either Kan. Stat. Ann. § 74-50,114 or 74-50,211, and amendments thereto, shall be allowed a credit for such investment, in an amount determined under subsection (b) against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to Kan. Stat. Ann. § 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 for the taxable year during which commencement of commercial operations, as defined in subsection (f) of Kan. Stat. Ann. § 79-32,154, and amendments thereto, occurs at such qualified business facility, and for each of the nine succeeding taxable years. No credit shall be allowed under this section unless the number of qualified business facility employees, as determined under subsection (d) of Kan. Stat. Ann. § 79-32,154, and amendments thereto, engaged or maintained in employment at the qualified business facility as a direct result of the investment by the taxpayer for the taxable year for which the credit is claimed equals or exceeds two. Where an employee performs services for the taxpayer outside the qualified business facility, the employee shall be considered engaged or maintained in employment at the qualified business facility if (1) the employee’s service performed outside the qualified business facility is incidental to the employee’s service inside the qualified business facility, or (2) the base of operations or, the place from which the service is directed or controlled, is at the qualified business facility.
(b) The credit allowed by subsection (a) for any taxpayer who invests in a qualified business facility shall be a portion of the tax, but not in excess of 50% of such tax, otherwise imposed on or measured by the taxpayer’s qualified business facility income, as defined in subsection (g) of Kan. Stat. Ann. § 79-32,154, and amendments thereto, for the taxable year for which such credit is allowed. Such portion shall be an amount equal to the sum of the following:
Terms Used In Kansas Statutes 79-32,153
- Commencement of commercial operations: shall be deemed to occur during the first taxable year for which the qualified business facility is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue producing enterprise in which the taxpayer intends to use the qualified business facility. See Kansas Statutes 79-32,154
- Facility: shall mean any factory, mill, plant, refinery, warehouse, feedlot, building or complex of buildings located within the state, including the land on which such facility is located and all machinery, equipment and other real and tangible personal property located at or within such facility used in connection with the operation of such facility. See Kansas Statutes 79-32,154
- Public utility: means any business entity which owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products or gas. See Kansas Statutes 79-3271
- Qualified business facility: shall mean a facility which satisfies the requirements of paragraphs (1) and (2) of this subsection. See Kansas Statutes 79-32,154
- Qualified business facility employee: shall mean a person employed by the taxpayer in the operation of a qualified business facility during the taxable year for which the credit allowed by Kan. See Kansas Statutes 79-32,154
- Qualified business facility income: shall mean the Kansas taxable income derived by the taxpayer from the operation of the qualified business facility. See Kansas Statutes 79-32,154
- Qualified business facility investment: shall mean the value of the real and tangible personal property, except inventory or property held for sale to customers in the ordinary course of the taxpayer's business, which constitutes the qualified business facility, or which is used by the taxpayer in the operation of the qualified business facility, during the taxable year for which the credit allowed by Kan. See Kansas Statutes 79-32,154
(1) One hundred dollars for each qualified business facility employee determined under Kan. Stat. Ann. § 79-32,154, and amendments thereto; plus
(2) one hundred dollars for each $100,000, or major fraction thereof (which shall be deemed to be 51% or more), in qualified business facility investment as determined under Kan. Stat. Ann. § 79-32,154, and amendments thereto.
(c) For tax years commencing after December 31, 2005, any taxpayer claiming credits pursuant to this section, as a condition for claiming and qualifying for such credits, shall provide information pursuant to Kan. Stat. Ann. § 79-32,243, and amendments thereto, as part of the tax return in which such credits are claimed. Such credits shall not be denied solely on the basis of the contents of the information provided by the taxpayer pursuant to Kan. Stat. Ann. § 79-32,243, and amendments thereto.
(d) No credit shall be allowed under this section for investment in a public utility, as such term is defined in Kan. Stat. Ann. § 66-104, and amendments thereto.