Kansas Enacts Expense Deduction for Qualifying Property Purchases
Kansas has recently enacted new legislation to ease the tax burden
of companies who invest in new depreciable property. Senate Bill 196 allows
Kansas corporations a deduction from net income for purchases of qualified Kansas
Applying to taxable years commencing after December 31, 2011,
the amount of deduction and type of qualified property is determined based on state
guidelines. However, property specifically excluded from the deduction is nonresidential
real property and any other property with an applicable recover period in excess of
Corporations must file for this deduction by the due date of the
original return, including any extensions. Deduction is only available in the
tax year the property is placed is service in the state. No carryforward is allowed,
and any deduction exceeding net income will be treated as a Kansas net operating loss
by the business.
In addition, there are recapture provisions for selling or moving
property within 5 years.
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