Fillable Schedule K-79 - Kansas Biomass-To-Energy Plant Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-79

GENERAL INFORMATION

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

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

tax liability of a taxpayer who makes a qualified investment in a biomass-

Multiply line 4 by line 5, and enter the result.

to-energy plant for tax years beginning after December 31, 2005 and

LINE 7 – Credit limit on the total qualified investment. Add line 3 and line

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

6, and enter the result.

investment on the first $250,000,000 invested, and 5% of the taxpayer’s

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.

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR

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

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:

LINE 14 – Total credit available. Add line 12 and 13, and enter the result.

(1) Petroleum oil, natural gas, coal and lignite, and any products thereof;

LINE 15 – Enter your tax liability after all credits other than this credit.

and (2) corn or grain sorghum suitable for human consumption.

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

Biomass-to-energy plant means an industrial process plant, located

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

in this state, where biomass is processed to produce annually any of the

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

following, and coproducts: (1) Not less than 500,000 gallons of cellulosic

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

Commerce must be kept with your records. The Kansas

Qualified investment means expenditures made in construction of a

Department of Revenue reserves the right to request additional information

new biomass-to-energy plant or in expansion of the capacity of an existing

as necessary.

biomass-to-energy plant, for real and tangible personal property

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

$250,000,000 made in the construction of a new biomass-to-energy

For assistance in completing this schedule contact the Kansas

plant or in the expansion of the capacity of an existing biomass-to-

Department of Revenue:

energy plant.

Tax Operations

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

Docking State Office Building, 1

Floor

investment.

915 SW Harrison St.

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

Topeka, KS 66625-2007

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

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 are available from our web site at .

existing biomass-to-energy plant.

Schedule K-79 - Kansas Biomass-To-Energy Plant Credit Page 2

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