Business Machinery and Equipment Tax Credit

The Kansas Tax Reduction and Reform Act of 1998 provides an annual tax credit against the income tax, privilege tax, and insurance company premiums tax. The credit equals 15 percent of the personal property tax paid on commercial and industrial machinery and equipment. The amount of the credit that exceeds the tax liability will be refunded for companies paying income tax. The credit will be increased to 20 percent for 2005 and 2006, and to 25 percent beginning in 2007.