Session of 2000
By Committee on Business, Commerce and Labor

10             AN  ACT relating to vocational education; authorizing tax credits for do-
11             nations of equipment and machinery to vocational colleges and area
12             vocational-technical schools.
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. (a) For taxable years commencing after December 31,
16       1999 and ending before January 1, 2004, there shall be allowed as a credit
17       against the tax liability imposed by the Kansas income tax act on the
18       Kansas taxable income of a taxpayer, in an amount equal to 50% of the
19       value of equipment or machinery contributed to an area vocational tech-
20       nical school or technical college. In order to claim the credit, the ma-
21       chinery or equipment must be accepted by the school or college for use
22       in an existing vocational education program. The value of the equipment
23       or machinery shall be an amount equal to the most recent appraised value
24       of the equipment or machinery for purposes of state ad valorem taxation,
25       but, for purposes calculating the amount of the tax credits, no piece of
26       equipment or machinery shall be deemed to have a value in excess of
27       $5,000. If the taxpayer is a corporation having an election in effect under
28       subchapter S of the federal internal revenue code or a partnership, the
29       credit provided by this section shall be claimed by the shareholders of
30       such corporation or the partners of such partnership in the same manner
31       as such shareholders or partners account for their proportionate shares
32       of the income or loss of the corporation or partnership.
33             (b) Upon accepting a donation of equipment or machinery pursuant
34       to this act, the school or college shall report the name of the contributor
35       and the amount of the contribution to the state board of regents. The
36       state board of regents shall provide a cumulative list of contributions
37       received each year to the secretary of revenue. In addition, the school or
38       college accepting the donation shall report to the state board of regents
39       the number of students enrolled in the vocational education courses in
40       which the equipment was used and the percentage of those students
41       placed in the vocation for which they were trained for in the calendar
42       year following the year the machinery or equipment was accepted.
43             (c) The secretary of revenue shall allow not more than $2,000,000 in


  1       tax credits per year to be claimed pursuant to this act. 
  2        Sec.  2. This act shall take effect and be in force from and after its
  3       publication in the statute book.