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INSTRUCTIONS FOR SCHEDULE K-77
GENERAL INFORMATION LINE 9 – Total credit allowed to be claimed this tax year. Multiply
K.S.A. 79-32,224 provides a tax credit against the Kansas line 7 by line 8 and enter the result.
income tax liability of a taxpayer who makes a “qualified LINE 10 – Partners, shareholders or members: Enter the percentage
investment” in a new qualifying pipeline for tax years beginning that represents your proportionate share in the partnership, S
after December 31, 2005 and before January 1, 2011. The credit corporation, LLC or LLP. All other taxpayers: Enter 100%.
is 10% of the taxpayer’s qualified investment on the first LINE 11 – Your share of the credit. Multiply line 9 by line 10, and
$250,000,000 invested, and 5% of the taxpayer’s qualified enter the result.
investment that exceeds $250,000,000. The credit will be taken
in ten (10) equal, annual installments, beginning with the year in PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
which the taxpayer places into service the new qualifying pipeline.
Before making a qualified investment, a taxpayer shall apply Indicate, by checking the appropriate box, which year of the
to the Secretary of Commerce to enter into an agreement for a annual installments for which this credit is being claimed.
tax credit. After receipt of such application, the Secretary of LINE 12 – Enter the amount from line 11, Schedule K-77 from the
Commerce may enter into an agreement with the applicant for a first year in which this credit was claimed.
credit if the Secretary determines that the taxpayer’s proposed
investment satisfies the requirements. LINE 13 – Enter the amount of available carry forward credit from
the prior year’s Schedule K-77.
If the credit allowed exceeds the taxpayer’s tax liability in any
one taxable year, the amount of the credit that exceeds the tax LINE 14 – Total credit available. Add line 12 and 13, and enter the
liability may be carried forward until the total amount of the credit result.
is used, except that no such tax credit shall be carried over for
LINE 15 – Enter your tax liability after all credits other than this
deduction after the 14th taxable year after the taxable year in
credit.
which the first annual installment is allowed.
Expenditures used to qualify for this credit shall not be used to LINE 16 – Enter the lesser of lines 14 or 15. This is the amount of
qualify for any other type of Kansas income tax credit. credit allowed for this tax year. Enter this amount on the
appropriate line of Form K-40, Form K-41 or Form K-120.
Qualified investment means expenditures made in
construction of a new qualifying pipeline 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 pipeline.
Qualifying pipeline means a pipeline that is located in this PART C – COMPUTATION OF CARRY FORWARD CREDIT
state, is used primarily for transportation of crude oil or natural
gas liquids, with a length of more than 190 miles in this state and LINE 17 – Subtract line 16 from line 14. This is the amount of
to which refineries or natural gas liquid processing facilities in credit to carry forward to next year’s Schedule K-77.
this state have access.
IMPORTANT: Do not send any enclosures with this
SPECIFIC LINE INSTRUCTIONS schedule. A copy of the approved authorization from the
Secretary of Commerce must be kept with your records.
Enter all requested information at the top of this schedule.
The Kansas Department of Revenue reserves the right to request
PART A – COMPUTATION OF CREDIT additional information as necessary.
(To be completed only in the first year that this credit is claimed)
TAXPAYER ASSISTANCE
LINE 1 – Enter the total qualified investment up to and including
the first $250,000,000 made in the construction of a new Address questions about qualifying for this credit to:
qualifying pipeline. Kansas Department of Commerce
LINE 2 – The credit is limited to 10% of the first $250,000,000 of 1000 SW Jackson, Suite 100
“qualified investment”. Topeka KS 66612-1354
LINE 3 – Credit limit on the qualified investment for the first 785-296-3481
$250,000,000. Multiply line 1 by line 2, and enter the result. http://kdoch.state.ks.us
LINE 4 – Enter the total qualified investment which exceeds the
For assistance in completing this schedule contact the Kansas
first $250,000,000 of investment made in the construction of
Department of Revenue:
a new qualifying pipeline.
LINE 5 – The credit is limited to 5% of the qualified investment Taxpayer Assistance
that exceeds $250,000,000. 120 SE 10th Ave
PO Box 750260
LINE 6 – Credit limit on the qualified investment that exceeds Topeka KS 66699-0260
$250,000,000. Multiply line 4 by line 5, and enter the result.
Phone: 785-368-8222
LINE 7 – Credit limit on the total qualified investment. Add line 3 Fax: 785-291-3614
and line 6, and enter the result.
LINE 8– Authorized credit percentage. This credit may be claimed Additional copies of this income tax credit schedule and other
in ten (10) equal annual installments. tax forms are available from our website at: ksrevenue.gov
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