This bill amends the Kansas income tax law to expand the income tax credit for qualified railroad track maintenance expenditures. The credit will now also apply to certain premium taxes, privilege fees, and privilege taxes, allowing eligible taxpayers to receive a credit equal to 50% of their qualified railroad track maintenance expenditures for taxable years 2022 through 2031. The maximum credit amount is capped at $5,000 per mile of railroad track owned or leased, with a total limit of $8,720,000 in credits allowed each year. Additionally, the bill allows for the transfer of unused credits to any individual or entity subject to these taxes, rather than just eligible customers or vendors as previously defined.

The bill also includes several deletions from the existing law, such as the removal of the definitions for "eligible customer" and "eligible vendor," which previously specified certain businesses and services related to class II or class III railroads. Instead, the focus is now solely on "eligible taxpayers," which include railroads classified as class II or class III and owners or lessees of rail sidings adjacent to these railroads. The bill mandates that any unused credits can be carried forward for up to five years and establishes that the credit is non-refundable. The Secretary of Revenue is tasked with certifying the tax credit amounts and may adopt necessary regulations for its administration.

Statutes affected:
As Introduced: 79-32
As introduced: 79-32