The Kansas Telecommunications Credit, filed using Schedule K-36, is a refundable income tax credit available to telecommunications companies for property taxes paid on qualifying property. This credit is authorized under K.S.A. 79-32,210 and applies to property that was initially acquired and first placed in service after January 1, 2001, and has an assessment rate of 33%. The credit amount equals the property taxes paid for the difference between the actual assessment rate (33%) and a 25% assessment level.
Eligibility and Credit Calculation
- Eligible entities: State-assessed telecommunications companies.
- Property must have been acquired and placed in service after January 1, 2001.
- Assessment rate must be 33%.
- Credit amount = The property taxes attributable to the difference between the actual 33% assessment rate and a 25% assessment rate on qualifying property.
- The credit is refundable, meaning if the credit exceeds the company’s tax liability, the excess is refunded.
Required Documentation
- Companies must obtain Form TC-100 from the Division of Property Valuation within the Kansas Department of Revenue.
- Form TC-100 certifies the amount of tax credit available for the property.
- Property taxes must be paid timely during the income tax year for which the credit is claimed.
- Note: Taxes paid in one income tax year may relate to property assessed in two different years, so Form TC-100 may be needed for two separate years.
Source:
Schedule K-36: Kansas Telecommunications Credit
Disclaimer: Always verify details with the Kansas Department of Revenue’s official forms and instructions. This information is for general guidance and may not apply to all situations. For complex tax matters, consult a qualified tax professional or attorney.