Schedule K-39 - Kansas Credit For Plugging An Abandoned Oil Or Gas Well Page 2
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1
2INSTRUCTIONS FOR SCHEDULE K-39
GENERAL INFORMATION
LINE 6—Enter the total of lines 4 and 5.
LINE 7—The amount of credit allowed is 50% of the total costs
K.S.A. 79-32,207 provides for an income tax credit for taxpayers
incurred this tax year.
who make expenditures during the tax year to plug an abandoned
oil or gas well on their land in accordance with the rules and
LINE 8—Multiply line 6 by line 7. This is the amount of plugging
regulations of the Kansas Corporation Commission (KCC). The
expenditures available for credit this tax year.
credit is 50% of expenditures made during the tax year. If the
credit exceeds the tax liability for the taxable year the expenditures
PART C — COMPUTATION OF THIS YEAR’S CREDIT
are made, any unused credit may be carried forward until used.
The total amount of credits taken by all taxpayers (including any
LINE 9—Enter any carry forward from line 14 of your prior year’s
carry over) may not exceed $250,000 in any fiscal year.
Schedule K-39.
For tax year 2013, and all tax years thereafter, new
LINE 10—Enter the amount of credit denied from the prior year’s
credits shall be available to only corporations that
Schedule K-39 because the fiscal year credit limit had been
are subject to the Kansas corporate income tax (i.e.,
reached.
C corporations). New credits shall no longer be available to
LINE 11—Add lines 8, 9, and 10 and enter the result. This is your
individuals, partnerships, S corporations, limited liability
total credit available this tax year.
companies, and other pass-through entities.
Carry Forward of Unused Credits: If this credit was earned
LINE 12—Enter amount of your Kansas tax liability after all credits
prior to tax year 2013 and a carry forward credit remains available
other than the credit for plugging an abandoned well.
to a taxpayer, that taxpayer may continue to claim that credit.
LINE 13—Enter the lesser of lines 11 or 12. Enter this amount
However, that carry forward credit shall be subject to limitations
on the appropriate line of Form K-40, Form K-41, or Form
and requirements in place at the time the credit was earned.
K-120.
An abandoned oil or gas well is any well: 1) that the KCC
has the authority to plug, replug, or repair because such well is
PART D — COMPUTATION OF CREDIT CARRY FORWARD
polluting or is likely to pollute any usable water strata or supply,
or causing the loss of usable water; 2) on which drilling began
LINE 14—Subtract line 13 from line 11. This is the amount of
prior to January 1, 1970; and 3) that is located on land owned by
credit you will have available to enter on line 9 of your next
the taxpayer claiming this credit.
year’s Schedule K-39.
Fiscal Year Credit Limitation. Qualifying taxpayers will receive
IMPORTANT: Do not send enclosures with this credit
the credit on a “first come, first serve” basis. The credit will be
denied after the statutory fiscal year credit limit of $250,000 has
schedule. Retain copies of the following documents with
been reached. However, the amount of credit denied for this
your tax records as KDOR (Kansas Department of
reason may be entered on line 10 of the subsequent year’s
Revenue) reserves the right to request them as necessary to
verify your tax credit.
Schedule K-39.
• KCC Form CP-4.
SPECIFIC LINE INSTRUCTIONS
• An itemized list of expenses with copies of invoices for
plugging costs and the KCC invoice indicating that the
IMPORTANT: If you incurred expenses to plug more
Commission has verified the plugging. List the expenses
than one qualifying abandoned oil or gas well this tax
of each well separately.
year as certified by the KCC, retain a schedule for your
• If applicable, the KDOR letter of denied credit for line 10.
records showing the information in Part A for each well as it may
be requested at a later date.
TAXPAYER ASSISTANCE
Complete all information at the top of the schedule.
For information about plugging an abandoned oil or gas well
or your certification, contact the:
PART A — ABANDONED WELL INFORMATION
Kansas Corporation Commission
LINE 1—Enter the API (American Petroleum Institute) number
Conservation Division
and physical location of the abandoned well.
130 S. Market, Room 2078
LINE 2—Check one of the boxes. Only wells located on land
Wichita, KS 67202-3802
owned by the taxpayer claiming the credit qualify for the credit.
Phone: (316) 337-6200
LINE 3—Enter date drilling of this well began (only wells on which
drilling began prior to January 1, 1970 qualify for the credit).
For assistance in completing this schedule contact KDOR:
PART B — PLUGGING COSTS (C Corporations only)
Tax Operations
Docking State Office Building, 1st fl.
LINE 4—Enter the KCC plugging fee for the abandoned well.
915 SW Harrison St.
Enclose a copy of KCC plugging invoice, even if the fee was
Topeka, KS 66612-1588
waived by KCC.
Phone: (785) 368-8222
LINE 5— Enter the total of other expenses incurred this tax year
Fax: (785) 291-3614
to plug the abandoned well. If you plugged more than one
Web site:
qualifying well, enter the total for all qualifying wells.
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