This bill amends the Kansas income tax law to expand the income tax credit for qualified railroad track maintenance expenditures. The new provisions allow eligible taxpayers to receive a credit equal to 50% of their qualified railroad track maintenance expenditures, applicable not only against income tax but also against certain premium taxes, privilege fees, and privilege taxes. The bill specifies that the credit is available for taxable years 2022 through 2031, with a maximum credit limit based on the number of miles of railroad track owned or leased in Kansas, and a total cap of $8,720,000 in credits allowed per year.

Additionally, the bill introduces the ability for eligible taxpayers to transfer unused credits to any individual or entity subject to the specified taxes, replacing the previous language that limited transfers to eligible customers or vendors. The process for transferring credits includes a requirement for both the original taxpayer and the transferee to file a written agreement with the Kansas Department of Revenue. The bill also clarifies definitions related to eligible taxpayers and qualified expenditures while repealing the existing section of K.S.A. 2025 Supp. 79-32,297.

Statutes affected:
As introduced: 79-32