K.S.A. 79-32,206 provides a tax credit against the income tax, privilege tax, and insurance company premiums tax for personal property taxes paid. The credit is 25% of the personal property taxes timely paid in the tax year. The property tax must have been timely paid during the tax year for which the credit is taken. The amount of credit that exceeds the tax liability will be refunded.
“Qualifying machinery and equipment” means commercial and industrial machinery and equipment required to be listed for property taxation on Schedule 2, Schedule 5, or Schedule 6 by a for-profit business required to file an income tax, privilege tax, or insurance company premiums tax return.
• Schedule 2—Prescribed and/or itemized machinery and equipment used in mineral leasehold interests including diesel engines, drilling rigs, electric motors, line piping, mud pumps, water injection pumps, oil separators, oil well tubing pumps, pumping jacks, service units and tanks.
• Schedule 5—Commercial and industrial machinery and equipment used for business purposes.
• Schedule 6—All other business related tangible personal property not elsewhere classified, such as spare parts. Equipment that is leased can only be claimed by the owner.
Personal property tax paid on motor vehicles, nonbusiness use property, leased equipment and tangible personal property owned by a public utility is not eligible for this credit (K.S.A. 79-32,206).
K-64 - Kansas Business Machinery and Equipment Credit