Telecommunications Credit

INCOME TAXPAYERS-Effective for all taxable years beginning after Dec. 31, 2000.

Beginning in tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.

For all taxable years commencing after Dec. 31, 2000, and with respect to property initially acquired and first placed into service in this state on and after Jan. 1, 2001, there shall be allowed an income tax credit, for an amount equal to the difference between the property tax levied at 33 percent assessment rate and an assessment rate of 25 percent on all taxes actually and timely paid during the appropriate income tax year.

Qualifications

A credit shall be allowed against the tax liability imposed by the Kansas income tax act of a telecommunications company, as defined in K.S.A. 79-3271.

The property tax levied, must be actually and timely paid during the tax year for which the credit is taken.

Credit Amount

The total credit is an amount equal to the difference between the property tax levied for property tax year 2001, and all years thereafter, upon property assessed at the 33 percent assessment rate and the property tax which would be levied and paid on such property if assessed at a 25 percent assessment rate.

Telecommunication Refund

The amount of credit which exceeds the tax liability for a taxable year is refunded to the taxpayer.

Procedures to Claim the Credit

You may download Schedule K-36 to claim the telecommunication credit. The schedule must be completed and submitted with the income tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-36. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.

Railroad Credit

INCOME TAXPAYERS-Effective for all taxable years beginning after Dec. 31, 2004 and prior to Jan. 1, 2012.

Any taxpayer may claim an income tax credit for property tax paid on railroad machinery and equipment.

Qualifications

Railroad machinery and equipment must be classified for property taxation purposes as subclass 3 of class 2 under section 1 of article 11 of the Kansas Constitution.

Credit Amount

A taxpayer shall receive a credit of 20 percent of the property tax levied for property tax years 2005 and 2006, and 25 percent of the property tax levied for property tax year 2007 and such years thereafter, actually and timely paid upon railroad machinery and equipment.

Machinery and Equipment Refund

The amount of credit which exceeds the tax liability for a taxable year is refunded to the taxpayer.

Procedures to Claim the Credit

You may download Schedule K-36 to claim the railroad credit.  This schedule must be completed and submitted with the income tax return.  You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-36.  You will be asked to give your name, address, phone number and form(s) you desire.  Please allow two weeks for delivery of your forms.

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Telecommunications Company

K.S.A. 79-3271 provides: Telecommunications company means any business entity or unitary group of entities whose primary business activity is the transmission of communications in the form of voice, data, signals or facsimile communications by wire or fiber optic cable.

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Class 2, Subclass 3

Personal property available for this credit is provided by the Kansas Department of Revenue, Property Valuation Division, on Form RC-100.

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