Fillable Schedule K-77 - Qualifying Pipeline Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-77

GENERAL INFORMATION

LINE 9 – Total credit allowed to be claimed this tax year. Multiply

line 7 by line 8 and enter the result.

K.S.A. 79-32,224 provides a tax credit against the Kansas

LINE 10 – Partners, shareholders or members: Enter the percentage

income tax liability of a taxpayer who makes a “qualified

that represents your proportionate share in the partnership, S

investment” in a new qualifying pipeline for tax years beginning

corporation, LLC or LLP. All other taxpayers: Enter 100%.

after December 31, 2005 and before January 1, 2011. The credit

LINE 11 – Your share of the credit. Multiply line 9 by line 10, and

is 10% of the taxpayer’s qualified investment on the first

enter the result.

$250,000,000 invested, and 5% of the taxpayer’s qualified

investment that exceeds $250,000,000. The credit will be taken

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR

in ten (10) equal, annual installments, beginning with the year in

which the taxpayer places into service the new qualifying pipeline.

Indicate, by checking the appropriate box, which year of the

Before making a qualified investment, a taxpayer shall apply

annual installments for which this credit is being claimed.

to the Secretary of Commerce to enter into an agreement for a

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

LINE 13 – Enter the amount of available carry forward credit from

investment satisfies the requirements.

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.

LINE 16 – Enter the lesser of lines 14 or 15. This is the amount of

Expenditures used to qualify for this credit shall not be used to

credit allowed for this tax year. Enter this amount on the

qualify for any other type of Kansas income tax credit.

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.

PART C – COMPUTATION OF CARRY FORWARD CREDIT

Qualifying pipeline means a pipeline that is located in this

state, is used primarily for transportation of crude oil or natural

LINE 17 – Subtract line 16 from line 14. This is the amount of

gas liquids, with a length of more than 190 miles in this state and

credit to carry forward to next year’s Schedule K-77.

to which refineries or natural gas liquid processing facilities in

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

Address questions about qualifying for this credit to:

the first $250,000,000 made in the construction of a new

qualifying pipeline.

Kansas Department of Commerce

1000 SW Jackson, Suite 100

LINE 2 – The credit is limited to 10% of the first $250,000,000 of

Topeka, KS 66612-1354

“qualified investment”.

(785) 296-3481

LINE 3 – Credit limit on the qualified investment for the first

$250,000,000. Multiply line 1 by line 2, and enter the result.

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.

Tax Operations

LINE 5 – The credit is limited to 5% of the qualified investment

Docking State Office Building, 1

Floor

that exceeds $250,000,000.

915 SW Harrison St.

LINE 6 – Credit limit on the qualified investment that exceeds

Topeka, KS 66625-2007

$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 web site at:

Schedule K-77 - Qualifying Pipeline Credit Page 2

Related Articles

Related forms

Related Categories