----------------------------------------------------------------------------


AN ACT relating to income taxation; providing a credit therefrom for
  expenses incurred in plugging abandoned oil and gas wells.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  (a) For any taxable year commencing after December 31,
1996, and before January 1, 2006, a credit shall be allowed against the tax
imposed by the Kansas income tax act on the Kansas taxable income of a
taxpayer for expenditures made for the purpose of plugging any aban-
doned oil or gas well in this state in accordance with the rules and reg-
ulations of the state corporation commission applicable thereto, the drill-
ing of which was commenced prior to January 1, 1970, and for which such
taxpayer is not legally responsible for its proper care and control, in an
amount equal to 50% of such expenditures made in the taxable year.
  If the amount of such tax credit exceeds the taxpayer's income tax
liability for such taxable year, the amount thereof which exceeds such tax
liability may be carried over for deduction from the taxpayer's income tax
liability in the next succeeding taxable year or years until the total amount
of the tax credit has been deducted from tax liability.
  (b)  The secretary of revenue shall adopt such rules and regulations
as may be necessary to carry out the purposes of this section.
  Sec. 2.  This act shall take effect and be in force from and after its
publication in the statute book.