Session of 2000
By Committee on Agriculture

10             AN  ACT relating to income taxation; providing for a credit therefrom for
11             certain operating loan expenses incurred by a farming business.
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. (a) For all taxable years commencing after December 31,
15       1999, there shall be allowed as a credit against the tax liability of an
16       eligible farming business imposed under the Kansas income tax act, an
17       amount equal to any amount paid to the farm service agency of the United
18       States department of agriculture as a guaranty fee pursuant to the ob-
19       taining of an operating loan guaranteed by such service. If such business
20       is a corporation having an election in effect under subchapter S of the
21       federal internal revenue code, a partnership or a limited liability company,
22       the credit provided by this section shall be claimed by the shareholders
23       of such corporation, the partners of such partnership or the members of
24       such limited liability company in the same manner as such shareholders,
25       partners or members account for their proportionate shares of the income
26       or loss of the corporation, partnership or limited liability company.
27             (b) The credit authorized by this section shall only be claimed against
28       the tax liability resulting from income generated by the farming business.
29       If an income tax return upon which this credit is claimed includes ad-
30       justed gross income from sources other than the farming business, the
31       credit shall only be allowed to be claimed upon a percentage of the in-
32       come tax liability which does not exceed the percentage of adjusted gross
33       income generated by the farming business as compared to the total ad-
34       justed gross income shown on the return.
35             (c) If the amount of the tax credit allowed by this section exceeds the
36       taxpayer's income tax liability for such taxable year, the amount thereof
37       which exceeds such tax liability may be carried over for deduction from
38       the taxpayer's income tax liability in the next succeeding taxable year or
39       years until the total amount of the tax credit has been deducted from tax
40       liability.
41             (d) As used in this section, "eligible farming business" shall have the
42       meaning ascribed thereto by section 263A(e)(4) of the federal internal
43       revenue code.


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