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INSTRUCTIONS FOR SCHEDULE K-73
GENERAL INFORMATION LINE 6 – Credit limit on the qualified investment that exceeds
$250,000,000. Multiply line 4 by line 5, and enter the result.
K.S.A. 79-32,218 provides a credit against the Kansas income
tax liability of a taxpayer who makes a “qualified investment” in a LINE 7 – Credit limit on the total qualified investment. Add line 3
and line 6, and enter the result.
refinery for tax years beginning after 12/31/05 and before 01/01/11.
The credit is 10% of the taxpayer’s qualified investment on the LINE 8 – Authorized credit percentage. This credit may be claimed
first $250,000,000 invested, and 5% of the taxpayer’s qualified in ten (10) equal annual installments.
investment that exceeds $250,000,000. The credit will be taken LINE 9 – Total credit allowed to be claimed this tax year. Multiply
in 10 equal, annual installments, beginning with the year in which line 7 by line 8, and enter the result.
the taxpayer places into service the new refinery, the expansion LINE 10 – Partners, shareholders or members: Enter the
of an existing refinery or the restoration of production of a refinery. percentage that represents your proportionate share in the
Before making a qualified investment, a taxpayer shall apply partnership, S corporation, LLC or LLP. All other taxpayers:
to the Secretary of Commerce to enter into an agreement for a tax Enter 100%.
credit. After receipt of such application, the Secretary of Commerce LINE 11 – Your share of the credit. Multiply line 9 by line 10 and
may enter into an agreement with the applicant for a petroleum enter the result.
refinery credit if the Secretary determines that the taxpayer’s
proposed investment satisfies the requirements. PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
If the credit allowed exceeds the taxpayer’s tax liability in any
one taxable year, the amount of the credit that exceeds the tax Indicate, by checking the appropriate box, which year of the
liability may be carried forward until the total amount of the credit annual installments for which this credit is being claimed.
is used, except that no such tax credit shall be carried over for LINE 12 – Enter the amount from line 11, Schedule K-73 from the
deduction after the 14th taxable year after the taxable year in first year in which this credit was claimed.
which the first annual installment is allowed. LINE 13 – Enter the amount of available carry forward credit from
Expenditures used to qualify for this credit shall not be used to the prior year’s Schedule K-73.
qualify for any other type of Kansas income tax credit. LINE 14 – Total credit available. Add lines 12 and 13, and enter
Expansion of an existing refinery means expansion which the result.
begins after 12/31/05, of the capacity of an existing refinery by at
LINE 15 – Enter your tax liability after all credits other than this
least 10% of such capacity. credit.
New refinery means a refinery; construction of which begins
LINE 16 – Enter the lesser of lines 14 or 15. This is the amount of
after12/31/05.
credit allowed for this tax year. Enter this amount on the
Qualified Investment means expenditures made in appropriate line of Form K-40, Form K-41 or Form K-120.
construction of a new refinery, expansion of an existing refinery
or restoration of production of a refinery, for real and tangible If line 16 is less than line 14, complete PART C.
personal property incorporated in and used as part of such refinery.
Refinery means an industrial process plant, located in this state, PART C – COMPUTATION OF CARRY FORWARD CREDIT
where crude oil is processed and refined into petroleum products.
LINE 17 – Subtract line 16 from line 14. This is the amount of
Restoration of production of a refinery means restoration credit to carry forward to next year’s Schedule K-73.
which begins after 12/31/05, of production of a refinery which has
been out of production for five or more years. IMPORTANT: Do not send any enclosures with this
schedule. A copy of the approved authorization from the
SPECIFIC LINE INSTRUCTIONS Secretary of Commerce must be kept with your records.
The Kansas Department of Revenue reserves the right to request
Enter all requested information at the top of this schedule. additional information as necessary.
PART A – COMPUTATION OF CREDIT TAXPAYER ASSISTANCE
(To be completed only in the first year that this credit is claimed) Address questions about qualifying for this credit to:
LINE 1 – Enter the total qualified investment up to and including Kansas Department of Commerce
the first $250,000,000 made in the construction of a new 1000 SW Jackson, Suite 100
refinery, expansion of an existing refinery or restoration of Topeka, KS 66612-1354
production of a refinery, including all real and tangible Phone: 785 296-3481-
personal property incorporated in and used as part of such http://kdoch.state.ks.us
refinery.
LINE 2 – The credit is limited to 10% of the first $250,000,000 of For assistance in completing this schedule contact the Kansas
qualified investment. Department of Revenue:
LINE 3 – Credit limit on the qualified investment for the first Taxpayer Assistance Center
Scott Office Building
$250,000,000. Multiply line 1 by line 2, and enter the result. 120 SE 10th Ave.
LINE 4 – Enter the total qualified investment which exceeds the PO Box 750260
Topeka KS 66699-0260
first $250,000,000 of investment made in the construction of
a new refinery, expansion of an existing refinery or restoration Phone: 785-368-8222
Fax: 785-291-3614
of production of a refinery.
LINE 5 – The credit is limited to 5% of the qualified investment Additional copies of this income tax credit schedule and other
that exceeds $250,000,000. tax forms are available from our website at: ksrevenue.org.
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