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Session of 2025
HOUSE BILL No. 2233
By Committee on Taxation
Requested by Representative Schwertfeger
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AN ACT concerning taxation; relating to property taxation; disqualifying
property from the carbon dioxide capture and sequestration property tax
exemption if used to inject animal manure into the ground; relating to
income tax; disqualifying from the carbon dioxide capture and
sequestration property accelerated depreciation deduction if machinery
and equipment are used to inject animal manure into the ground;
amending K.S.A. 79-233 and 79-32,256 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 79-233 is hereby amended to read as follows: 79-
233. (a) The following described property, to the extent herein specified,
shall be exempt from all property taxes levied under the laws of the state
of Kansas: Any carbon dioxide capture, sequestration or utilization
property; and any electric generation unit which captures and sequesters
all carbon dioxide and other emissions.
(b) The provisions of subsection (a) shall apply from and after
purchase or commencement of construction or installation of such property
and for the five taxable years immediately following the taxable year in
which construction or installation of such property is completed.
(c) The provisions of this section shall not apply to all taxable years
commencing after December 31, 2007 any property that injects animal
manure into the ground.
(d) As used in this section, "carbon dioxide capture, sequestration or
utilization property" means:
(1) Any machinery and equipment used to capture carbon dioxide
from industrial and other anthropogenic sources or to convert such carbon
dioxide into one or more products;
(2) any carbon dioxide injection well, as defined in K.S.A. 2024
Supp. 55-1637, and amendments thereto; and
(3) any machinery and equipment used to recover carbon dioxide
from sequestration.
Sec. 2. K.S.A. 79-32,256 is hereby amended to read as follows: 79-
32,256. (a) A taxpayer shall be entitled to a deduction from Kansas
adjusted gross income with respect to the amortization of the amortizable
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costs of carbon dioxide capture, sequestration or utilization machinery and
equipment based upon a period of 10 years. Such amortization deduction
shall be an amount equal to 55% of the amortizable costs of such
machinery and equipment for the first taxable year in which such
machinery and equipment are in operation and 5% of the amortizable costs
of such machinery and equipment for each of the next nine taxable years.
(b) The election of the taxpayer to claim the deduction allowed by
subsection (a) shall be made by filing a statement of such election with the
secretary of revenue in the manner and form and within the time
prescribed by rules and regulations adopted by the secretary.
(c) The provisions of this section shall not apply to all taxable years
commencing after December 31, 2007 machinery and equipment that
injects animal manure into the ground.
(d) The secretary of revenue shall adopt such rules and regulations as
deemed necessary to carry out the provisions of this section.
(e) As used in this section, "carbon dioxide capture, sequestration or
utilization machinery and equipment" means any machinery and
equipment which is located in this state and is: (1) Used to capture carbon
dioxide from industrial and other anthropogenic sources, or to convert
such carbon dioxide into one or more products; (2) used to inject carbon
dioxide into a carbon dioxide injection well, as defined in K.S.A. 2024
Supp. 55-1637, and amendments thereto; or (3) used to recover carbon
dioxide from sequestration.
Sec. 3. K.S.A. 79-233 and 79-32,256 are hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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