An income tax credit equal to 25% (for TYs 2007 and after) of the personal property tax paid on qualified machinery and equipment.

To Qualify:

You are eligible if you paid personal property tax on qualified business machinery and equipment without incurring any late payment penalties, and you are filing an income tax return. Financial institutions filing a Kansas privilege tax return, and insurance companies paying the insurance company premiums tax are also eligible for this credit.

“Qualified machinery and equipment,” means items required to be listed for property taxation on Schedule 2, Schedule 5, or Schedule 6 of the rendition. Items that DO NOT qualify for the credit include motor vehicles, personal property owned by a public utility, and property not used for a business purpose.

The basis for the credit is the personal property tax timely paid on business machinery and equipment during the tax year. Example: For tax year 2010 (calendar year), the last half of 2009 property taxes paid by May 10, 2010 and the 2010 property tax paid by December 20, 2020 are the basis of the credit.

NOTE: Business Machinery and Equipment acquired after June 30, 2006 may be exempt from property tax.