Session of 2000
By Committee on Agriculture

  9             AN  ACT relating to income taxation; providing for a credit therefrom for
10             certain operating loan expenses incurred by a farming 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 farming business imposed under the Kansas income tax act, an
16       amount equal to any amount paid to the farm service agency of the United
17       States department of agriculture as a guaranty fee pursuant to the ob-
18       taining of an operating loan guaranteed by such service. If such business
19       is a corporation having an election in effect under subchapter S of the
20       federal internal revenue code, a partnership or a limited liability company,
21       the credit provided by this section shall be claimed by the shareholders
22       of such corporation, the partners of such partnership or the members of
23       such limited liability company in the same manner as such shareholders,
24       partners or members account for their proportionate shares of the income
25       or 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 farming business.
28       If an income tax return upon which this credit is claimed includes ad-
29       justed gross income from sources other than the farming business, the
30       credit shall only be allowed to be claimed upon a percentage of the in-
31       come tax liability which does not exceed the percentage of adjusted gross
32       income generated by the farming business as compared to the total ad-
33       justed gross income 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 farming business" shall have the
41       meaning ascribed thereto by section 263A(e)(4) of the federal internal
42       revenue code.


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