Integrated Coal Gasification Power Plant Credit
INCOME TAXPAYER-Effective for all taxable years commencing after December 31, 2005 and before January 1, 2011.
An income taxpayer that makes a qualified investment in a new integrated coal gasification power plant or in the expansion of an existing integrated coal gasification power plant shall be allowed a tax credit.
QUALIFICATIONS
Before making a qualified investment, a taxpayer shall apply to the Kansas Corporation Commission (KCC) to enter into an agreement for this tax credit. After receipt of the application the KCC may enter into an agreement with the applicant for a credit if it is determined that the taxpayer’s proposed investment satisfies the requirements.
CREDIT AMOUNT
The credit is 10% of the taxpayer’s qualified investment on the first $250,000,000 invested, and 5% of the taxpayer’s qualified investment that exceeds $250,000,000. The credit will be taken in ten equal, annual installments, beginning with the year in which the taxpayer places into service the new integrated coal gasification power plant or the expansion of an existing integrated coal gasification power plant.
LIMITATION OF CREDIT
If the amount of the credit exceeds the taxpayer’s tax liability in any one taxable year, 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 14th taxable year after the taxable year in which the first annual installment is allowed.
PROCEDURES TO CLAIM THE CREDIT
You may download Schedule K-80 to claim the integrated coal gasification power plant 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-80. 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.
INTEGRATED COAL GASIFICATION POWER PLANT CREDIT DEFINITIONS
QUALIFIED INVESTMENT
Qualified investment means expenditures made in construction of a new integrated coal gasification power plant or in the expansion of an existing integrated coal gasification power plant, for real and tangible personal property incorporated in an used as part of the plant.
NEW INTEGRATED COAL GASIFICATION POWER PLANT
New integrated coal gasification power plant means an integrated coal gasification power plant, construction of which begins after December 31, 2005.
EXPANSION OF AN EXISTING INTEGRATED COAL GASIFICATION POWER PLANT
Expansion of an existing integrated coal gasification power plant means expansion which begins after December 31, 2005, of the capacity of an existing integrated coal gasification power plant by at least 10% of the capacity.
INTEGRATED COAL GASIFICATION POWER PLANT
Integrated coal gasification power plant means a facility which: (1) Is located in Kansas, (2) converts coal into synthesis gas that can be used as a fuel to generate energy and (3) uses the synthesis gas as a fuel to generate electric energy.