Session of 1999
By Committee on Taxation

  9             AN  ACT relating to income taxation; providing a credit therefrom for
10             certain investments in certain agricultural cooperatives.
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, 1998, 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 for direct
26       investment in an agricultural cooperative. The credit allowed by this sub-
27       section in any taxable year to a taxpayer shall not exceed the amount equal
28       to 25% of such investment or $2,000, whichever amount is less. If the
29       amount of such tax credit exceeds the taxpayer's income tax liability for
30       any such taxable year, such excess amount may be carried over for de-
31       duction from the taxpayer's income tax liability in the next succeeding
32       taxable year or years until the total amount of the tax credit has been
33       deducted from tax liability, except that no such excess amount shall be
34       carried over for deduction after the fourth taxable year succeeding the
35       taxable year in which the direct investment was made.
36        Sec.  2. This act shall take effect and be in force from and after its
37       publication in the statute book.