Session of 2000
By Committee on Assessment and Taxation

  9             AN  ACT relating to income taxation; concerning the credit for research
10             and development activities; amending K.S.A. 79-32,182 and repealing
11             the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 79-32,182 is hereby amended to read as follows:
15       79-32,182. (a) For any taxable year commencing after December 31,
16       1987, and before January 1, 2001, a credit shall be allowed against the tax
17       imposed by the Kansas income tax act on the Kansas taxable income of a
18       taxpayer for expenditures in research and development activities con-
19       ducted within this state in an amount equal to 6 1/2% of the amount by
20       which the amount expended for such activities in the taxable year of the
21       taxpayer exceeds the taxpayer's average of the actual expenditures for
22       such purposes made in such taxable year and the next preceding two
23       taxable years.
24             (b) In any one taxable year, the amount of such credit allowable for
25       deduction from the taxpayer's tax liability shall not exceed 25% of the
26       total amount of such credit plus any applicable carry forward amount.
27       The amount by which that portion of the credit allowed by subsections
28       (a) and (b) to be claimed in any one taxable year exceeds the taxpayer's
29       tax liability in such year may be carried forward until the total amount of
30       the credit is used.
31             (c) As used in this section, the term "expenditures in research and
32       development activities" means expenditures made for such purposes,
33       other than expenditures of moneys made available to the taxpayer pur-
34       suant to federal or state law, which are treated as expenses allowable for
35       deduction under the provisions of the federal internal revenue code of
36       1986, and amendments thereto. 
37       Sec.  2. K.S.A. 79-32,182 is hereby repealed.
38        Sec.  3. This act shall take effect and be in force from and after its
39       publication in the statute book.