How is qualified business facility investment computed for the Kansas High Performance Incentive Program (HPIP) investment tax credit when the tax year and the certification period do not run concurrently?

Plain-English summary

This is a short Kansas Opinion Letter from the Department's Office of Policy & Research, dated August 16, 2002. It responds to a request about how to compute qualified business facility investment at an existing qualified business facility for the High Performance Incentive Program (HPIP) investment tax credit.

The letter is essentially a transmittal note: the Department says it has enclosed a worked example for the specific situation in which the tax year and the certification period do not run concurrently. The letter itself does not state the computation or announce a rule — the illustrative example was a separate attachment, and that attachment is not reproduced in the published text.

Under Kansas's HPIP, a qualifying business can earn an income-tax credit tied to its investment in a qualified business facility. The wrinkle the correspondent raised — and the enclosed example addressed — is timing: what to count as investment when the business's tax year and the HPIP certification period cover different spans of time.

What this means for you

Treat this document as a pointer, not an answer. It confirms the Department was willing to illustrate, by example, how HPIP qualified-business-facility investment is measured when the tax year and certification period do not line up — but the actual math lived in an attachment that is not part of the published letter. If you need the computation itself, you would look to the underlying HPIP statutes and regulations or request current guidance from the Department, rather than rely on this letter, which states no standalone conclusion.

Common questions

Q: Does this opinion letter tell me how to compute HPIP investment?
A: Not directly. It says the Department enclosed an example for the non-concurrent tax-year/certification-period situation, but the example itself is a separate attachment not reproduced in the released text.

Q: What was the specific issue?
A: How to compute qualified business facility investment at an existing qualified business facility for the HPIP investment tax credit when the tax year and the certification period do not run concurrently.

Q: Which taxes does the HPIP credit apply against?
A: The letter is classified under Corporate Income Tax and Individual Income Tax.

Citations and references

• The letter cites no statute section; it transmits an illustrative HPIP computation example without stating a rule in the published text.

Subject

Computation of qualified business facility investment at an existing qualified business facility for the High Performance Incentive Program (HPIP) investment tax credit.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-2002-015

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

August 16, 2002

XXXXX
XXXXX
XXXXX

Dear XXXXX:

Thank you for your letter requesting information regarding the computation of qualified business facility investment at an existing qualified business facility for the High Performance Incentive Program (HPIP) investment tax credit.

I have enclosed an example where the tax year and certification period do not run concurrently.

If you should have any questions following your review of the example please give me a call.

Sincerely,

Kathleen M. Smith
Tax Specialist, Office of Policy and Research

Double click on the attachment below to launch Acrobat Reader and view the document.

If you do not have Acrobat Reader, it can be downloaded through the KDOR website.

Date Composed: 08/22/2002 Date Modified: 08/22/2002

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