Deferred Maintenance Credit
Income and Privilege Taxpayers - Effective on and after July 1, 2008 and prior to December 31, 2012.
A tax credit shall be allowed for any taxpayer that makes a contribution to a community college located in Kansas for capital improvements, to a technical college for deferred maintenance or the purchase of technology or equipment or to a postsecondary educational institution located in Kansas for deferred maintenance.
Contributions received by the community college, technical college or postsecondary educational institution must be used in the manner as defined by statute.
The credit is 60 percent of the total amount contributed during the taxable year by the taxpayer to a community college or a technical college located in Kansas.
The credit is 50 percent of the total amount contributed during the taxable year by the taxpayer to a postsecondary educational institution in Kansas.
If the credit allowed exceeds the tax liability for a taxpayer that contributes to a community college or a technical college, such excess shall be refunded to the taxpayer.
If the credit allowed exceeds the tax liability for a taxpayer that contributes to a postsecondary educational institution, the remaining portion of the credit may be carried forward until the total amount of the credit is used, except that no such tax credit shall be carried over for deduction after the third taxable year succeeding the year in which the contribution was made.
Limitation of Credit
In no event shall the total amount of credits allowed for taxpayers who contribute to any one such community college or technical college exceed the following amounts: Tax year 2008, an amount not to exceed $78,125; for the tax year 2009, an amount not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an amount not to exceed $208,233.33.
In no event shall the total amount of credits allowed for taxpayers who contribute to postsecondary educational institutions exceed the following amounts: Tax year 2008, an amount not to exceed $5.625 million; for the tax year 2009, an amount not to exceed $11.25 million; and for the tax years 2010, 2011 and 2012, an amount not to exceed $15 million.
Procedures to Claim the Credit
Individual contributors and corporate contributors that have made a contribution to an educational institution will be required to file the appropriate tax return electronically. Individuals shall file an individual income tax return (Form K-40) and corporations shall file a corporate income tax return (Form K-120) electronically.
For donors/contributors that file a privilege tax return or a fiduciary tax return and that have made a contribution to a designated technical college or community college, the contributor shall enter the amount of credit that has been awarded directly on the applicable tax return. If the contributor is a privilege taxpayer, the amount of credit awarded will be entered directly on Form K-130. If the contributor is a fiduciary income taxpayer, the amount of credit awarded will be entered directly on Form K-41.
For donors/contributors that file a privilege tax return or a fiduciary tax return and that have made a contribution to a designated university, the contributor shall enter the amount of credit to be used directly on the applicable tax return, Form K-130, or Form K-41. Because this is a nonrefundable credit, the contributor will need to determine how much of the tax credit can be applied against the tax liability in any given year and how much credit must be carried forward. A worksheet will be available for those contributors making contributions to designated universities.
A community college established under the provisions of the community college act.
Allen County Community College, Barton County Community College, Butler County Community College, Cloud County Community College, Coffeyville Community College and Area Technical School, Colby Community College, Cowley Community College, Dodge City Community College, Fort Scott Community College, Garden City Community College, Highland Community College, Hutchinson Community College, Independence Community College, Johnson County Community College, Kansas City Kansas Community College, Labette Community College, Neosho County Community College, Pratt Community College, Seward County Community College.
Maintenance, repair, reconstruction or rehabilitation of a building located at a technical college or a postsecondary educational institution which has been deferred, any utility systems relating to such building, any life-safety upgrades to such building and any improvements necessary to be made to such building in order to comply with the requirements of the American with disabilities act or other federal or state law.
Postsecondary Educational Institution
University of Kansas, Kansas State University of Agriculture and Applied Science, Wichita State University, Emporia State University, Pittsburg State University, Fort Hays State University and Washburn University of Topeka.
A technical college as designated pursuant to K.S.A. 72-4472, 72-4473, 72-4474, 72-4475 and 72-4477, and amendments thereto.
Flint Hills Technical College, Manhattan Area Technical College, North Central Kansas Technical College, Northwest Kansas Technical College, Wichita Area Technical College.