HB 2481--
Session of 1997
By Committee on Taxation

9 AN ACT relating to income taxation; providing a credit therefrom for 10 certain investments in certain agricultural cooperatives. 11 12 Be it enacted by the Legislature of the State of Kansas: 13 Section 1. (a) As used in this section: 14 (1) ``Agricultural cooperative'' means any corporation which is organ- 15 ized pursuant to the provisions of K.S.A. 17-1601 et seq., and amendments 16 thereto, and which engages in the activity of developing and promoting 17 the processing and marketing of agricultural commodities grown, made 18 or manufactured in this state through marketing contracts entered into 19 pursuant to K.S.A. 17-1616, and amendments thereto; and 20 (2) ``direct investment'' means the payment of money or the transfer 21 of any form of economic value, whether tangible or intangible, other than 22 money in exchange for stock. 23 (b) For all taxable years commencing after December 31, 1996, there 24 shall be allowed a credit against the tax liability of an individual or family 25 farm corporation imposed under the Kansas income tax act in an amount 26 equal to a direct investment in an agricultural cooperative. The credit 27 allowed by this subsection in any taxable year to a taxpayer shall not 28 exceed $500, or the amount of tax imposed under the Kansas income tax 29 act reduced by the sum of any other credits allowable pursuant to law, 30 whichever amount is less. If the amount of such tax credit exceeds the 31 taxpayer's income tax liability for any such taxable year, such excess 32 amount may be carried over for deduction from the taxpayer's income 33 tax liability in the next succeeding taxable year or years until the total 34 amount of the tax credit has been deducted from tax liability, except that 35 no such excess amount shall be carried over for deduction after the fourth 36 taxable year succeeding the taxable year in which the direct investment 37 was made. 38 Sec. 2. This act shall take effect and be in force from and after its 39 publication in the statute book.