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Business Machinery and Equipment Tax Credit
Definition:
An income tax credit equal to 15% of the personal property
tax paid on qualified machinery and equipment
To Qualify:
You are eligible if you paid personal property tax on qualified
business machinery and equipment without incurring any late
payment penalties and you are a sole proprietorship, partnership,
corporation, Limited Liability Company, or other business
organization filing an income tax return. Financial institutions
filing a Kansas privilege tax return, and insurance companies
paying the insurance company premiums tax are also eligible
for this credit.
"Qualified
machinery and equipment" means items required to be listed
for property taxation on Schedule 2, Schedule 5, or Schedule
6 of the rendition. Items that DO NOT qualify for the
credit include motor vehicles, personal property owned by
a public utility, and property not used for a business purpose.
The basis for
the credit is the personal property tax timely paid on business
machinery and equipment during the tax year. Example: For
tax year 2005 (calendar year), the last half of 2004 property
taxes paid by May 10, 2005, and the 2004 property tax paid
by December 20, 2004, is the basis of the credit.
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How
to Claim Your Refund or Tax Credit
Homestead
Refund:
Complete a Kansas Homestead Claim, Form K-40H and mail it
to the Kansas Department of Revenue anytime from January 1
through April 15.
Food Sales
Tax Refund:
Complete the Food Sales Tax Refund portions of the Kansas
Individual Income Tax and/or Food Sales Tax Refund return,
Form K-40. If you filed a Form K-40 last year, you may use
one of our paperless lifing options, TeleFile or PC File,
to obtain a faster refund.
Business Machinery
and Equipment Tax Credit:
Complete Schedule K-64, "Business Machinery and Equipment
Tax Credit" and enclose it with your tax return along
with a copy of your personal property tax receipt. If your
paid receipt does not separate the tax paid on qualified property
from other personal property taxes paid, obtain a breakdown
of the tax paid on qualifying property from the county.
Forms
are available from the Kansas Department of Revenue, driver's
license exam stations, and other places of convenience throughout
the state. Forms also may be ordered from the Kansas Department
of Revenue's voice mail forms request line at (785) 296-4937,
or download from our web page at www.ink.org/public/kdor.
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Taxpayer
Assistance
Assistance and
additional information on these tax refunds and credits are
available from the Kansas Department of Revenue, Docking State
Office Building, 915 SW Harrison St., 1st Floor, Topeka, KS
66625. In Topeka call (785) 368-8222; outside Topeka call
toll free: 1-877-526-7738; Hearing-Impaired TTYL (785)
296-6461. Information and forms are also available from the
department's web page at www.ink.org/public/kdor.
Homestead and
Food Sales Tax Refund assistance is available from your county
clerk or from free volunteer tax assistance programs. Contact
you local Department on Aging, Community Action Program, senior
center, library, or county clerk for information on availability
in your area.
For assistance
in determining the amount of personal property taxes paid
on commercial and industrial machinery and equipment, contact
your county officials.
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