Fillable Schedule K-73 - Kansas Petroleum Refinery Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-73

GENERAL INFORMATION

LINE 6 – Credit limit on the qualified investment that exceeds

$250,000,000. Multiply line 4 by line 5, and enter the result.

K.S.A. 79-32,218 provides a credit against the Kansas income

LINE 7 – Credit limit on the total qualified investment. Add line 3

tax liability of a taxpayer who makes a “qualified investment” in a

and line 6, and enter the result.

refinery for tax years beginning after 12/31/05 and before 01/01/11.

LINE 8 – Authorized credit percentage. This credit may be claimed

The credit is 10% of the taxpayer’s qualified investment on the

in ten (10) equal annual installments.

first $250,000,000 invested, and 5% of the taxpayer’s qualified

investment that exceeds $250,000,000. The credit will be taken

LINE 9 – Total credit allowed to be claimed this tax year. Multiply

in 10 equal, annual installments, beginning with the year in which

line 7 by line 8, and enter the result.

the taxpayer places into service the new refinery, the expansion

LINE 10 – Partners, shareholders or members: Enter the

of an existing refinery or the restoration of production of a refinery.

percentage that represents your proportionate share in the

Before making a qualified investment, a taxpayer shall apply

partnership, S corporation, LLC or LLP. All other taxpayers:

to the Secretary of Commerce to enter into an agreement for a tax

Enter 100%.

credit. After receipt of such application, the Secretary of Commerce

LINE 11 – Your share of the credit. Multiply line 9 by line 10 and

may enter into an agreement with the applicant for a petroleum

enter the result.

refinery credit if the Secretary determines that the taxpayer’s

proposed investment satisfies the requirements.

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR

If the credit allowed exceeds the taxpayer’s tax liability in any

Indicate, by checking the appropriate box, which year of the

one taxable year, the amount of the credit that exceeds the tax

annual installments for which this credit is being claimed.

liability may be carried forward until the total amount of the credit

is used, except that no such tax credit shall be carried over for

LINE 12 – Enter the amount from line 11, Schedule K-73 from the

deduction after the 14th taxable year after the taxable year in

first year in which this credit was claimed.

which the first annual installment is allowed.

LINE 13 – Enter the amount of available carry forward credit from

Expenditures used to qualify for this credit shall not be used to

the prior year’s Schedule K-73.

qualify for any other type of Kansas income tax credit.

LINE 14 – Total credit available. Add lines 12 and 13, and enter

Expansion of an existing refinery means expansion which

the result.

begins after 12/31/05, of the capacity of an existing refinery by at

LINE 15 – Enter your tax liability after all credits other than this

least 10% of such capacity.

credit.

New refinery means a refinery; construction of which begins

LINE 16 – Enter the lesser of lines 14 or 15. This is the amount of

after12/31/05.

credit allowed for this tax year. Enter this amount on the

Qualified Investment means expenditures made in

appropriate line of Form K-40, Form K-41 or Form K-120.

construction of a new refinery, expansion of an existing refinery

If line 16 is less than line 14, complete PART C.

or restoration of production of a refinery, for real and tangible

personal property incorporated in and used as part of such refinery.

PART C – COMPUTATION OF CARRY FORWARD CREDIT

Refinery means an industrial process plant, located in this state,

where crude oil is processed and refined into petroleum products.

LINE 17 – Subtract line 16 from line 14. This is the amount of

Restoration of production of a refinery means restoration

credit to carry forward to next year’s Schedule K-73.

which begins after 12/31/05, of production of a refinery which has

been out of production for five or more years.

IMPORTANT: Do not send any enclosures with this

schedule. A copy of the approved authorization from the

SPECIFIC LINE INSTRUCTIONS

Secretary of Commerce must be kept with your records.

The Kansas Department of Revenue reserves the right to request

Enter all requested information at the top of this schedule.

additional information as necessary.

PART A – COMPUTATION OF CREDIT

TAXPAYER ASSISTANCE

(To be completed only in the first year that this credit is claimed)

Address questions about qualifying for this credit to:

LINE 1 – Enter the total qualified investment up to and including

Kansas Department of Commerce

the first $250,000,000 made in the construction of a new

1000 SW Jackson, Suite 100

refinery, expansion of an existing refinery or restoration of

Topeka, KS 66612-1354

production of a refinery, including all real and tangible

Phone: (785) 296-3481

personal property incorporated in and used as part of such

refinery.

For assistance in completing this schedule contact the Kansas

LINE 2 – The credit is limited to 10% of the first $250,000,000 of

Department of Revenue:

qualified investment.

Tax Operations

LINE 3 – Credit limit on the qualified investment for the first

Docking State Office Building, 1

Floor

$250,000,000. Multiply line 1 by line 2, and enter the result.

915 SW Harrison St.

LINE 4 – Enter the total qualified investment which exceeds the

Topeka, KS 66625-2007

first $250,000,000 of investment made in the construction of

Phone: (785) 368-8222

a new refinery, expansion of an existing refinery or restoration

Fax: (785) 291-3614

of production of a refinery.

Additional copies of this income tax credit schedule and other

LINE 5 – The credit is limited to 5% of the qualified investment

tax forms are available from our web site at: .

that exceeds $250,000,000.

Schedule K-73 - Kansas Petroleum Refinery Credit Page 2

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