---

Session of 1999
          HOUSE BILL No. 2394           By Representative Toplikar           2-10          

---

  9             AN  ACT relating to income taxation; allowing a credit therefrom for
10             dwelling place remodeling expenditures.
11      
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. (a) Any resident individual taxpayer who makes expendi-
14       tures for the purpose of remodeling the principal dwelling of the taxpayer
15       shall be entitled to claim an income tax credit in an amount equal to the
16       product of the applicable percentage of such expenditures computed in
17       accordance with the following schedule multiplied by a percentage, not
18       exceeding 100%, of 25% for each dependent child of the taxpayer for
19       which a personal exemption may be claimed, or $4,500, whichever is less,
20       against the income tax liability imposed upon such individual pursuant to
21       the Kansas income tax act. The applicable percentage of such expendi-
22       tures eligible for credit shall be as set forth in the following schedule:

23		% of
24	Taxpayers	expenditures
25	Kansas Adjusted	eligible for
26	|Gross Income	credit
27	$0 to $30,000	100%
28	Over $30,000 but not over $35,000	90%
29	Over $35,000 but not over $40,000	80%
30	Over $40,000 but not over $45,000	70%
31	Over $45,000 but not over $50,000	60%
32	Over $50,000 but not over $55,000	50%
33	Over $55,000 but not over $60,000	40%
34	Over $60,000 but not over $65,000	30%
35	Over $65,000 but not over $70,000	20%
36	Over $70,000 but not over $75,000	10%
37	Over $75,000	0

38             (b) Such tax credit shall be deducted from the taxpayer's income
39       tax liability for the taxable year in which the expenditures are made
40       by the taxpayer. If the amount of such tax credit exceeds the taxpayer's
41       income tax liability for such taxable year, the amount thereof which
42       exceeds such tax liability may be carried over for deduction from the
43       taxpayer's income tax liability in the next succeeding taxable year or
44       years until the total amount of the tax credit has been deducted from
45       tax liability, except that no such tax credit shall be carried over for
46       deduction after the fourth taxable year succeeding the taxable year in
47       which the expenditures are made.
48             (c) Notwithstanding the provisions of subsection (a), if the
49       amount of the taxpayer's tax liability is less than $1,125 in the first
50       year in which the credit is claimed under this section, an amount equal
51       to the amount by which 14 of the credit allowable under this section
52       exceeds such tax liability shall be refunded to the taxpayer and the
53       amount by which such credit exceeds such tax liability less the amount
54       of such refund may be carried over for the next three succeeding
55       taxable years. If the amount of the taxpayer's tax liability is less than
56       $1,125 in the second year in which the credit is claimed under this
57       section, an amount equal to the amount by which 13 of the amount
58       of the credit carried over from the first taxable year exceeds such tax
59       liability shall be refunded to the taxpayer and the amount by which
60       the amount of the credit carried over from the first taxable year ex-
61       ceeds such tax liability less the amount of such refund may be carried
62       over for the next two succeeding taxable years. If the amount of the
63       taxpayer's tax liability is less than $1,125 in the third year in which the
64       credit is claimed under this section, an amount equal to the amount
65       by which ½ of the amount carried over from the second taxable year
66       exceeds such tax liability shall be refunded to the taxpayer and the
67       amount by which the amount of the credit carried over from the
68       second taxable year exceeds such tax liability less the amount of such
69       refund may be carried over to the next succeeding taxable year. If the
70       amount of the credit carried over from the third taxable year exceeds
71       the taxpayer's income tax liability for such year, the amount thereof
72       which exceeds such tax liability shall be refunded to the taxpayer.
73             (d) The provisions of this section shall be applicable to all taxable
74       years commencing after December 31, 1998.
75        Sec.  2. This act shall take effect and be in force from and after
76       its publication in the statute book.