Session of 2000
By Committee on Taxation

  9             AN  ACT relating to income taxation; providing for a credit therefrom for
10             certain expenses incurred by a small business.
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. (a) For all taxable years commencing after December 31,
14       1999, there shall be allowed as a credit against the tax liability of an
15       eligible small business imposed under the Kansas income tax act, an
16       amount equal to any amount paid to the United States small business
17       administration as a guaranty fee pursuant to the obtaining of financing
18       guaranteed by such administration. If such business is a corporation hav-
19       ing an election in effect under subchapter S of the federal internal rev-
20       enue code, a partnership or a limited liability company, the credit pro-
21       vided by this section shall be claimed by the shareholders of such
22       corporation, the partners of such partnership or the members of such
23       limited liability company in the same manner as such shareholders, part-
24       ners or members account for their proportionate shares of the income or
25       loss of the corporation, partnership or limited liability company.
26             (b) The credit authorized by this section shall only be claimed against
27       the tax liability resulting from income generated by the small business. If
28       an income tax return upon which this credit is claimed includes adjusted
29       gross income from sources other than the small business, the credit shall
30       only be allowed to be claimed upon a percentage of the income tax liability
31       which does not exceed the percentage of adjusted gross income generated
32       by the small business as compared to the total adjusted gross income
33       shown on the return.
34             (c) If the amount of the tax credit allowed by this section exceeds the
35       taxpayer's income tax liability for such taxable year, the amount thereof
36       which exceeds such tax liability may be carried over for deduction from
37       the taxpayer's income tax liability in the next succeeding taxable year or
38       years until the total amount of the tax credit has been deducted from tax
39       liability.
40             (d) As used in this section, "eligible small business" shall have the
41       meaning ascribed thereto by subsection (b) of section 44 of the federal
42       internal revenue code without regard to subparagraph (2)


  1       thereof. 
  2        Sec.  2. This act shall take effect and be in force from and after its
  3       publication in the statute book.