INCOME TAXPAYER-Effective for all taxable years beginning after December 31, 1997.

An income tax credit is allowed for expenditures made for plugging any abandoned oil or gas well in accordance with rules and regulations of the state corporation commission.

Qualifications

The oil or gas well must be plugged in accordance with rules and regulations of the Kansas Corporation Commission. For information about plugging an abandoned oil or gas well or certification, contact the:

Kansas Corporation Commission

Conservation Division

130 S. Market, Room 2078

Wichita, Kansas 67202-3802

(316) 337-6200

Credit Amount

The credit is 50% of the expenditures for plugging the oil or gas well.

Limitation of Credit

The credit is limited to the taxpayer's income tax liability. The amount of credit which exceeds the tax liability in any one taxable year may be carried forward until used. However, the total amount of credits taken by ALL taxpayers (including any credit carry over) may not exceed $250,000 in any fiscal year.

Abandoned Oil Or Gas Well Definitions

For purposes of this credit, an abandoned oil or gas well means an abandoned well:

• that the Kansas Corporation Commission has the authority to plug, replug or repair because the well is polluting or is likely to pollute any usable water strata or supply;
• on which drilling was begun before January 1, 1970;
• and is located on land owned by the taxpayer claiming the credit.

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