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 9  AN ACT relating to income taxation; providing a credit therefrom for
10    certain investments in certain agricultural cooperatives.
11
12  Be it enacted by the Legislature of the State of Kansas:
13    Section 1.  (a) As used in this section:
14    (1)  ``Agricultural cooperative'' means any corporation which is organ-
15  ized pursuant to the provisions of K.S.A. 17-1601 et seq., and amendments
16  thereto, and which engages in the activity of developing and promoting
17  the processing and marketing of agricultural commodities grown, made
18  or manufactured in this state through marketing contracts entered into
19  pursuant to K.S.A. 17-1616, and amendments thereto; and
20    (2)  ``direct investment'' means the payment of money or the transfer
21  of any form of economic value, whether tangible or intangible, other than
22  money in exchange for stock.
23    (b)  For all taxable years commencing after December 31, 1996, there
24  shall be allowed a credit against the tax liability of an individual or family
25  farm corporation imposed under the Kansas income tax act in an amount
26  equal to a direct investment in an agricultural cooperative. The credit
27  allowed by this subsection in any taxable year to a taxpayer shall not
28  exceed $500, or the amount of tax imposed under the Kansas income tax
29  act reduced by the sum of any other credits allowable pursuant to law,
30  whichever amount is less. If the amount of such tax credit exceeds the
31  taxpayer's income tax liability for any such taxable year, such excess
32  amount may be carried over for deduction from the taxpayer's income
33  tax liability in the next succeeding taxable year or years until the total
34  amount of the tax credit has been deducted from tax liability, except that
35  no such excess amount shall be carried over for deduction after the fourth
36  taxable year succeeding the taxable year in which the direct investment
37  was made.
38    Sec. 2.  This act shall take effect and be in force from and after its
39  publication in the statute book.