Storage and Blending Equipment 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 storage and blending equipment 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 $10 million invested, and five percent of the amount of the taxpayer’s qualified investment that exceeds $10 million. The credit will be taken in ten equal, annual installments, beginning with the year in which the taxpayer places into service the storage and blending equipment.
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-82 to claim the storage and blending equipment credit. This schedule must be completed and submitted with the income tax return. You may also call the KansasDepartment of Revenue voicemail system at 785-296-4937 to request Schedule K-82. 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.
Fuel made from organic matter, including solid and liquid organic waste, but excluding fuel made from oil, natural gas, coal or lignite, or any product thereof.
A fuel storage and distribution facility which is supplied by motor vehicle, pipeline or marine vessel and from which motor fuels may be removed at a rack. Fuel terminal does not include any facility at which motor fuel blend stocks and additives are used in the manufacture of products other than motor fuels and from which no motor fuels are removed.
Expenditures made for purchase, construction or installation of storage and blending equipment.
An industrial process plant, located in Kansas, where crude oil is processed and refined into petroleum products.
Storage and Blending Equipment
Any equipment which is used for storing and blending petroleum-based fuel and biodiesel, ethanol or other biofuel and is installed at a fuel terminal, refinery or biofuel production plant. Storage and blending equipment does not include equipment used only for denaturing ethyl alcohol.