K.S.A. 79-32, 206 as amended by the Legistature provides a tax credit against the income tax, privilege tax, and insurance company premiums tax equal to 20% of the personal property tax paid on qualifying machinery and equipment. The property tax must have been levied and timely paid during the tax year for which the credit is taken. The amount of credit that exceeds the tax liability will be refunded. The credit is effective for all tax years beginning after December 31, 2001, for property tax years 2002 through 2004. Note The credit will be 20% of the property tax levied for property tax years 2005 and 2006, and 25% of the property tax levied for property tax year 2007 and after.

Qualifying machinery and equipment means commmercial and industrial machinery and equipment required to be listed for property taxation on Schedule 2, Schedule 3, Schedule 5, or Schedule 6 by a for-profit business required to file an income tax, privilege tax, or insurance premiums tax return.

Required Information In order to complete this schedule you will need a copy of the receipt(s) from your county treasurer showing timely payment of the personal property tax on the qualifying property.

IMPORTANT You MUST enclose copies of the paid receipts with this schedule if the credit on line 4 is more than $500.

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