40-252f. Credit for insurance companies for certain business investment expenses in qualified business facilities; eligibility; definitions. - Kansas Statutes

40-252f

Chapter 40.--INSURANCE Article 2.--GENERAL PROVISIONS

      40-252f.   Credit for insurance companies for certainbusiness investment expenses in qualified business facilities; eligibility;definitions.(a) For tax years 2007, and thereafter, a foreign or domesticinsurance company required to pay a tax on premiums under subsection (A), (C),(D) or (F) of K.S.A. 40-252, and amendments thereto, shall be allowed creditsagainst such tax in amounts equal to the amount of such credits allowable underK.S.A. 74-50,132, 79-32,153 and 79-32,160a, and amendments thereto, when:

      (1)   Such credits are earned but not used by a related corporation notrequired to pay a tax on premiums under K.S.A. 40-252, and amendments thereto;

      (2)   the value of such credits ismade available to the related corporation through a reduction in costs chargedto the related corporation by such insurance company or the transfer of fundsto the related corporation in an amount equal to the credit claimed by theinsurance company; and

      (3)   when the entity earning the credits is engaged in acontract that is subject to the federal acquisition regulations for servicesrelated to the administration of the federal medicare program and has engagedin the investment in a qualified business facility as defined in K.S.A.79-32,154, and amendments thereto, with respect to the acquisition or retentionof a contract to administer the federal medicare program.

      (b)   In each tax year that the related corporation assigns to an insurancecompany its right to credits under this section, the related corporation mustfile and submit a signed waiver to the commissioner of insurance and thesecretary of revenue on a form supplied by the secretary of revenue.

      (c)   "Related corporation" shall mean a corporation or partnership controlledby the insurance company. For the purposes of this act, "controlled by theinsurance company" shall mean:

      (1)   In the case of a corporation, ownership, directly or indirectly, of stockpossessing at least 80% of the total combined voting power of all classes ofstock entitled to vote and at least 80% of all other classes of stock of thecorporation; and

      (2)   in the case of a partnership ownership of at least 80% of the capital orprofits interest in such partnership.

      History:   L. 2007, ch. 62, § 1; Apr. 5.