Electric Cogeneration Facility Credit
Income Taxpayer - Effective for all taxable years commencing after Dec. 31, 2006 and before Jan. 1, 2012.
An income taxpayer that makes a qualified investment in a new renewable electric cogeneration facility shall be allowed a tax credit.
Before making a qualified investment, a taxpayer shall apply to the Secretary of Commerce to enter into an agreement for this tax credit. After receipt of the application, the Secretary of Commerce may enter into an agreement with the applicant for a credit if it is determined that the taxpayer’s proposed investment satisfies the requirements.
The credit is 10 percent of the taxpayer’s qualified investment for the first $50 million invested, and five percent of the amount of the taxpayer’s qualified investment that exceeds $50 million. The credit will be taken in ten equal, annual installments, beginning with the year in which the taxpayer places into service the new renewable electric cogeneration facility.
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-83 to claim the electric cogeneration facility 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-83. 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.
NEW RENEWABLE ELECTRIC COGENERATION FACILITY
A renewable electric cogeneration facility which is located in Kansas and construction of which begins after Dec. 31, 2006.
Expenditures made in construction of a new renewable electric cogeneration facility, for real and tangible personal property incorporated in and used as part of such facility.
Renewable Electric Cogeneration Facility
A facility which generates electricity utilizing renewable energy resources or technologies as defined in K.S.A. 79-201, and amendments thereto, and which is owned and operated by the owner of an industrial, commercial or agricultural process to generate electricity for use in such process to displace current or provide for future electricity use.