Session of 2000
By Special Committee on Agriculture

10             AN  ACT relating to income taxation; providing a credit therefrom for
11             certain investments in certain agricultural cooperatives.
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. (a) As used in this section:
15             (1) "Agricultural cooperative" means any corporation which is organ-
16       ized pursuant to the provisions of K.S.A. 17-1601 et seq., and amendments
17       thereto, and which engages in the activity of developing and promoting
18       the processing and marketing of agricultural commodities grown, made
19       or manufactured in this state through marketing contracts entered into
20       pursuant to K.S.A. 17-1616, and amendments thereto; and
21             (2) "direct investment" means the payment of money or the transfer
22       of any form of economic value, whether tangible or intangible, other than
23       money in exchange for stock.
24             (b) For all taxable years commencing after December 31, 1998, there
25       shall be allowed a credit against the tax liability of an individual, family
26       farm corporation as defined under K.S.A. 17-5903 and amendments
27       thereto or limited liability agricultural company as defined under K.S.A.
28       17-5903 and amendments thereto imposed under the Kansas income tax
29       act in an amount equal to a direct investment in an agricultural cooper-
30       ative. The credit allowed by this subsection in any taxable year to a tax-
31       payer shall not exceed $500, or the amount of tax imposed under the
32       Kansas income tax act reduced by the sum of any other credits allowable
33       pursuant to law, whichever amount is less. If the amount of such tax credit
34       exceeds the taxpayer's income tax liability for any such taxable year, such
35       excess amount may be carried over for deduction from the taxpayer's
36       income tax liability in the next succeeding taxable year or years until the
37       total amount of the tax credit has been deducted from tax liability, except
38       that no such excess amount shall be carried over for deduction after the
39       fourth taxable year succeeding the taxable year in which the direct in-
40       vestment was made.
41        Sec.  2. This act shall take effect and be in force from and after its
42       publication in the statute book.