Kansas Petroleum Refinery Credit

Petroleum Refinery Credit
K-73 Petroleum Refinery Credit Rev. 8-19
K-73

KANSAS

192318

PETROLEUM REFINERY CREDIT

(Rev. 8-19)	

For the taxable year beginning _________________ , 20____ ; ending _________________ , 20____ .
Name of taxpayer (as shown on return)

Social Security Number or Employer ID Number (EIN)

If partner, shareholder or member, enter name of partnership, S corporation, LLC or LLP

Employer ID Number (EIN)

PART A – COMPUTATION OF CREDIT
Complete PART A in the year the new refinery, the expansion of an existing refinery or the restoration of production of a refinery has been
placed into service.
1. Enter the total amount of the “qualified investment”. Do not enter more than $250,000,000.

1. __________________

2. Authorized credit percentage.

10%
2. __________________

3. Credit limit on the “qualified investment” of $250,000,000 or less. Multiply line 1 by line 2.

3. __________________

4. Enter the total amount of the “qualified investment” that exceeds $250,000,000.

4. __________________

5. Authorized credit percentage.

5%
5. __________________

6. Credit limit on the “qualified investment” that exceeds $250,000,000. Multiply line 4 by line 5.

6. __________________

7. Credit limit on the total “qualified investment”. Add line 3 and line 6.

7. __________________

8. Authorized credit percentage allowed to be claimed each tax year.

10%
8. __________________

9. Total credit allowed to be claimed in the year the refinery is placed into service. Multiply line 7 by line 8.

9. __________________

10. Proportionate share percentage (see instructions).

10. ________________

11. Your share of the credit that may be claimed this tax year and the next subsequent nine (9) tax years.
Multiply line 9 by line 10.

11. _________________

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
Indicate, by checking the appropriate box, which year of the ten (10) equal annual installments for which this credit is being claimed:

 1st yr.

 2nd yr.

3rd yr.

 4th yr.

 5th yr.

 6th yr.

 7th yr.

 8th yr.

 9th yr.

 10th yr.

If the credit is being claimed for the “carry-over” 11th, 12th, 13th or 14th tax years, skip line 12 and make an entry on line 13.
12. Enter the amount from line 11, Schedule K-73 from the first year in which this credit was claimed.

12. ________________

13. Enter the amount of available carry forward credit from the prior year’s Schedule K-73.

13. ________________

14. Total credit available this tax year. Add lines 12 and 13.

14. ________________

15. Amount of your Kansas tax liability for this tax year after all credits other than this credit.

15. ________________

16. Amount of credit allowable this tax year. Enter the lesser of lines 14 or 15.
Enter this amount on the appropriate line of Form K-40, Form K-41 or Form K-120.

16. ________________

If line 16 is less than line 14, complete PART C.

PART C – COMPUTATION OF CARRY FORWARD CREDIT
17. Amount of credit to carry forward to next year’s Schedule K-73. Subtract line 16 from line 14.
Enter this amount on line 13 of next year’s Schedule K-73.

17. ________________

INSTRUCTIONS FOR SCHEDULE K-73

GENERAL INFORMATION

K.S.A. 79-32,218 provides a credit against the Kansas income
tax liability of a taxpayer who makes a “qualified investment” in a
refinery for tax years beginning after 12/31/05 and before 01/01/11.
The credit is 10% of the taxpayer’s qualified investment on the
first $250,000,000 invested, and 5% of the taxpayer’s qualified
investment that exceeds $250,000,000. The credit will be taken
in 10 equal, annual installments, beginning with the year in which
the taxpayer places into service the new refinery, the expansion
of an existing refinery or the restoration of production of a refinery.
Before making a qualified investment, a taxpayer shall apply
to the Secretary of Commerce to enter into an agreement for a tax
credit. After receipt of such application, the Secretary of Commerce
may enter into an agreement with the applicant for a petroleum
refinery credit if the Secretary determines that the taxpayer’s
proposed investment satisfies the requirements.
If the credit allowed exceeds the taxpayer’s tax liability in any
one taxable year, the amount of the credit that exceeds the tax
liability 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.
Expenditures used to qualify for this credit shall not be used to
qualify for any other type of Kansas income tax credit.
Expansion of an existing refinery means expansion which
begins after 12/31/05, of the capacity of an existing refinery by at
least 10% of such capacity.
New refinery means a refinery; construction of which begins
after12/31/05.
Qualified Investment means expenditures made in
construction of a new refinery, expansion of an existing refinery
or restoration of production of a refinery, for real and tangible
personal property incorporated in and used as part of such refinery.
Refinery means an industrial process plant, located in this state,
where crude oil is processed and refined into petroleum products.
Restoration of production of a refinery means restoration
which begins after 12/31/05, of production of a refinery which has
been out of production for five or more years.

SPECIFIC LINE INSTRUCTIONS
Enter all requested information at the top of this schedule.
PART A – COMPUTATION OF CREDIT

(To be completed only in the first year that this credit is claimed)
LINE 1 – Enter the total qualified investment up to and including
the first $250,000,000 made in the construction of a new
refinery, expansion of an existing refinery or restoration of
production of a refinery, including all real and tangible
personal property incorporated in and used as part of such
refinery.
LINE 2 – The credit is limited to 10% of the first $250,000,000 of
qualified investment.
LINE 3 – Credit limit on the qualified investment for the first
$250,000,000. Multiply line 1 by line 2, and enter the result.
LINE 4 – Enter the total qualified investment which exceeds the
first $250,000,000 of investment made in the construction of
a new refinery, expansion of an existing refinery or restoration
of production of a refinery.
LINE 5 – The credit is limited to 5% of the qualified investment
that exceeds $250,000,000.

LINE 6 – Credit limit on the qualified investment that exceeds
$250,000,000. Multiply line 4 by line 5, and enter the result.
LINE 7 – Credit limit on the total qualified investment. Add line 3
and line 6, and enter the result.
LINE 8 – Authorized credit percentage. This credit may be claimed
in ten (10) equal annual installments.
LINE 9 – Total credit allowed to be claimed this tax year. Multiply
line 7 by line 8, and enter the result.
LINE 10 – Partners, shareholders or members: Enter the
percentage that represents your proportionate share in the
partnership, S corporation, LLC or LLP. All other taxpayers:
Enter 100%.
LINE 11 – Your share of the credit. Multiply line 9 by line 10 and
enter the result.
PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
Indicate, by checking the appropriate box, which year of the
annual installments for which this credit is being claimed.
LINE 12 – Enter the amount from line 11, Schedule K-73 from the
first year in which this credit was claimed.
LINE 13 – Enter the amount of available carry forward credit from
the prior year’s Schedule K-73.
LINE 14 – Total credit available. Add lines 12 and 13, and enter
the result.
LINE 15 – Enter your tax liability after all credits other than this
credit.
LINE 16 – Enter the lesser of lines 14 or 15. This is the amount of
credit allowed for this tax year. Enter this amount on the
appropriate line of Form K-40, Form K-41 or Form K-120.
If line 16 is less than line 14, complete PART C.
PART C – COMPUTATION OF CARRY FORWARD CREDIT
LINE 17 – Subtract line 16 from line 14. This is the amount of
credit to carry forward to next year’s Schedule K-73.
IMPORTANT: Do not send any enclosures with this
schedule. A copy of the approved authorization from the
Secretary of Commerce must be kept with your records.
The Kansas Department of Revenue reserves the right to request
additional information as necessary.

TAXPAYER ASSISTANCE
Address questions about qualifying for this credit to:

Kansas Department of Commerce

1000 SW Jackson, Suite 100
Topeka, KS 66612-1354
Phone: 785-296-3481
http://kdoch.state.ks.us
For assistance in completing this schedule contact the Kansas
Department of Revenue:
Taxpayer Assistance Center
Scott Office Building
120 SE 10th Ave.
PO Box 750260
Topeka KS 66699-0260
Phone: 785-368-8222
Fax: 785-291-3614

Additional copies of this income tax credit schedule and other
tax forms are available from our website at: ksrevenue.gov.