Schedule K-80 - Integrated Coal Gasification Power Plant Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-80

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. 79-32,239 provides a tax credit against the Kansas income tax

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

liability of a taxpayer who makes a “qualified investment” in an “integrated

represents your proportionate share in the partnership, S corporation,

coal gasification power plant” for tax years beginning after December 31,

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

2005 and before January 1, 2011. The credit is 10% of the taxpayer’s

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

“qualified investment” on the first $250,000,000 invested, and 5% of the

result.

taxpayer’s “qualified investment” that exceeds $250,000,000. The credit

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

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR

in which the taxpayer places into service the new integrated coal gasification

power plant or the expansion of an existing integrated coal gasification

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

power plant.

installments for which this credit is being claimed.

Before making a qualified investment, a taxpayer shall apply to the Kansas

LINE 12 – Enter the amount from line 11, Schedule K-80 from the first year

Corporation Commission to enter into an agreement for a tax credit. After

in which this credit was claimed.

receipt of such application, the Kansas Corporation Commission may enter

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

into an agreement with the applicant for a integrated coal gasification power

year’s Schedule K-80.

plant credit if the Commission determines that the taxpayer’s proposed

investment satisfies the requirements.

LINE 14a – Add lines 12 and 13 and enter the result.

If the credit allowed exceeds the investor’s tax liability in any one

LINE 14b—Multiply the amount on line 14a by 90% (.90) and enter the

taxable year, the amount of the credit that exceeds the tax liability may

result.

be carried forward until the total amount of the credit is used, except that

LINE 15a – Enter your total Kansas tax liability for this tax year. If you are

no such tax credit shall be carried over for deduction after the 14th taxable

filing more than one (1) credit schedule this year, enter only the amount

year after the taxable year in which the first annual installment is allowed.

of tax liability you wish to apply to this credit. The amount entered on

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

line 15a (and not line 15b) is the amount of tax liability considered to

for any other type of Kansas income tax credit.

be “used” when calculating the remaining tax liability to be applied

Expansion of an existing integrated coal gasification power plant

against other credits. Example: If your tax liability is $1,000 (before

means expansion which begins after December 31, 2005, of the capacity

applying the 90% reduction) and the amount entered on line 15a is

of an existing integrated coal gasification power plant by at least 10% of

$400, then the amount of tax liability available to apply to any other

such capacity.

credit schedules would be $600.

Integrated coal gasification power plant means a facility which: 1)

LINE 15b—Multiply the amount on line 15a by 90% (.90) and enter the

Is located in Kansas, 2) converts coal into synthesis gas that can be

result.

used as a fuel to generate energy and 3) uses the synthesis gas as a

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

fuel to generate electric energy.

allowed for this tax year. Enter this amount on the appropriate line of

New integrated coal gasification power plant means an integrated

Form K-40, Form K-41 or Form K-120.

coal gasification power plant, construction of which begins after December

If line 16 is less than line 14a, complete PART C.

31, 2005.

Qualified investment means expenditures made in construction of a

PART C – COMPUTATION OF CARRY FORWARD CREDIT

new integrated coal gasification power plant or in expansion of an existing

integrated coal gasification power plant, for real and tangible personal

LINE 17 – Subtract line 15a from line 14a. This is the amount of credit to

property incorporated in and used as part of such plant.

carry forward to next year’s Schedule K-80.

SPECIFIC LINE INSTRUCTIONS

IMPORTANT: Do not send any enclosures with this schedule. A

copy of the approved authorization from the Kansas Corporation

Enter all requested information at the top of this schedule.

Commission must be kept with your records. The Kansas

Department of Revenue reserves the right to request additional information

PART A – COMPUTATION OF CREDIT

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 integrated coal

Address questions about qualifying for this credit to:

gasification power plant or in the expansion of an existing integrated

Kansas Corporation Commission

coal gasification power plant.

1500 SW Arrowhead Road

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

Topeka, KS 66604

investment”.

LINE 3 – Credit limit on the qualified investment for the first $250,000,000.

(785) 271-3100

Multiply line 1 by line 2, and enter the result.

kcc.state.ks.us

LINE 4 – Enter the total qualified investment which exceeds the first

For assistance in completing this schedule contact the Kansas

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

Department of Revenue:

integrated coal gasification power plant or in the expansion of an

existing integrated coal gasification power plant.

Taxpayer Assistance Center

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

Docking State Office Building, 1

Floor

$250,000,000.

915 SW Harrison St.

LINE 6 – Credit limit on the qualified investment that exceeds $250,000,000.

Topeka, KS 66625-2007

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 and line

Fax: (785) 291-3614

6, and enter the result.

Additional copies of this income tax credit schedule and other tax forms

LINE 8 – Authorized credit percentage. This credit may be claimed in ten

(10) equal annual installments.

are available from our web site at:

Schedule K-80 - Integrated Coal Gasification Power Plant Credit Page 2

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