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INSTRUCTIONS FOR SCHEDULE K-79
GENERALINFORMATION LINE 5 – The credit is limited to 5% of the qualified investment that
exceeds $250,000,000.
K.S.A. 79-32,234 provides a tax credit against the Kansas income
tax liability of a taxpayer who makes a qualified investment in a biomass- LINE 6 – Credit limit on the qualified investment that exceeds $250,000,000.
to-energy plant for tax years beginning after December 31, 2005 and Multiply line 4 by line 5, and enter the result.
before January 1, 2011. The credit is 10% of the taxpayer’s qualified LINE 7 – Credit limit on the total qualified investment. Add line 3 and line
investment on the first $250,000,000 invested, and 5% of the taxpayer’s 6, and enter the result.
qualified investment that exceeds $250,000,000. The credit will be taken LINE 8 – Authorized credit percentage. This credit may be claimed in ten
in ten (10) equal, annual installments, beginning with the year in which the (10) equal annual installments.
taxpayer places into service the new biomass-to-energy plant or the LINE 9 – Total credit allowed to be claimed this tax year. Multiply line 7 by
expansion of an existing biomass-to-energy plant. line 8, and enter the result.
Before making a qualified investment, a taxpayer shall apply to the LINE 10 – Partners, shareholders or members: Enter the percentage that
Secretary of Commerce to enter into an agreement for a tax credit. After represents your proportionate share in the partnership, S
receipt of application, the Secretary of Commerce may enter into an corporation, LLC or LLP. All other taxpayers: Enter 100%.
agreement with the applicant for a biomass-to-energy plant credit if it is LINE 11 – Your share of the credit. Multiply line 9 by line 10, and enter the
determined that the taxpayer’s proposed investment satisfies the result.
requirements.
If the credit allowed exceeds the investor’s tax liability in any one PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
taxable year, the amount of the credit that exceeds the tax liability may be
carried forward until the total amount of the credit is used, except that no Indicate, by checking the appropriate box, which year of the annual
such tax credit shall be carried over for deduction after the 14th taxable installments for which this credit is being claimed.
year after the taxable year in which the first annual installment is allowed.
LINE 12 – Enter the amount from line 11, Schedule K-79 from the first year
Expenditures used to qualify for this credit shall not be used to qualify in which this credit was claimed.
for any other type of Kansas income tax credit.
LINE 13 – Enter the amount of available carry forward credit from the prior
Biomass means any organic matter available on a renewable or year’s Schedule K-79.
recurring basis, including solid and liquid organic waste, but excluding:
(1) Petroleum oil, natural gas, coal and lignite, and any products thereof; LINE 14 – Total credit available. Add line 12 and 13, and enter the result.
and (2) corn or grain sorghum suitable for human consumption. LINE 15 – Enter your tax liability after all credits other than this credit.
Biomass-to-energy plant means an industrial process plant, located LINE 16 – Enter the lesser of lines 14 or 15. This is the amount of credit
in this state, where biomass is processed to produce annually any of the allowed for this tax year. Enter this amount on the appropriate line of
following, and coproducts: (1) Not less than 500,000 gallons of cellulosic Form K-40, Form K-41 or Form K-120.
alcohol; (2) liquid or gaseous fuel or energy in a quantity having BTU value If line 16 is less than line 14, complete PART C.
equal to or greater than 500,000 gallons of cellulosic alcohol; or (3) oil
produced for direct conversion into fuel in a quantity having BTU value PART C – COMPUTATION OF CARRY FORWARD CREDIT
equal to or greater than 500,000 gallons of cellulosic alcohol.
Expansion of an existing biomass-to-energy plant means LINE 17 – Subtract line 16 from line 14. This is the amount of credit to
expansion which begins after December 31, 2005, of the capacity of an carry forward to next year’s Schedule K-79.
existing biomass-to-energy plant by at least 10% of such capacity.
New biomass-to-energy plant means a biomass-to-energy plant, IMPORTANT: Do not send any enclosures with this schedule.
construction of which begins after December 31, 2005. A copy of the approved authorization from the Secretary of
Qualified investment means expenditures made in construction of a Commerce must be kept with your records. The Kansas
new biomass-to-energy plant or in expansion of the capacity of an existing Department of Revenue reserves the right to request additional information
biomass-to-energy plant, for real and tangible personal property as necessary.
incorporated in and used as part of such plant.
TAXPAYER ASSISTANCE
SPECIFIC LINE INSTRUCTIONS
Address questions about qualifying for this credit to:
Enter all requested information at the top of this schedule.
Kansas Department of Commerce
1000 SW Jackson, Suite 100
PART A – COMPUTATION OF CREDIT Topeka KS 66612-1354
(To be completed only in the first year that this credit is claimed)
785-296-3481
LINE 1 – Enter the total qualified investment up to and including the first http://kdoch.state.ks.us
$250,000,000 made in the construction of a new biomass-to-energy
plant or in the expansion of the capacity of an existing biomass-to- For assistance in completing this schedule contact the Kansas
energy plant. Department of Revenue:
LINE 2 – The credit is limited to 10% of the first $250,000,000 of qualified Taxpayer Assistance
investment. 120 SE 10th Ave
LINE 3 – Credit limit on the qualified investment for the first $250,000,000. PO Box 750260
Topeka KS 666
Multiply line 1 by line 2, and enter the result. 99-0260
Phone: 785 368-8222
LINE 4 – Enter the total qualified investment which exceeds the first -
Fax: 785 291-3614
$250,000,000 of investment made in the construction of a new -
biomass-to-energy plant or in the expansion of the capacity of an Additional copies of this income tax credit schedule and other tax forms
existing biomass-to-energy plant. are available from our website at: ksrevenue.org
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