This bill amends existing Kansas tax law regarding property taxation and income tax related to carbon dioxide capture and sequestration. Specifically, it disqualifies property from the carbon dioxide capture and sequestration property tax exemption if it is used to inject animal manure into the ground. Additionally, it removes the eligibility for the accelerated depreciation deduction for machinery and equipment used for the same purpose. The bill repeals the previous provisions that allowed these exemptions and deductions for all taxable years commencing after December 31, 2007.

The amendments to K.S.A. 79-233 and K.S.A. 79-32,256 clarify that the exemptions and deductions will not apply to any property or machinery that injects animal manure into the ground. This change aims to ensure that tax benefits associated with carbon dioxide capture and sequestration are not extended to practices involving animal manure injection, thereby refining the focus of the tax incentives to more environmentally beneficial activities. The act will take effect upon its publication in the statute book.

Statutes affected:
As introduced: 79-233, 79-32, 55-1637