E-community

Kansas Income Tax Credits

If you predict that you or your business will be paying Kansas Income Taxes this year and need some tax credits – PLEASE ‘reply’ back via this e-mail or call the PCED office at 785-543-5809.  Network Kansas is providing tax credits for individuals and businesses through Phillips County Economic Development to help raise monies for the Phillips County E-community fund.   Phillips County recieved designation as an E-Community from Network Kansas for 2010 on 10-25-2010.  

This 2010 tax credit program would allow you (business and/or individual paying Kansas Income Taxes) to keep  (designate) tax dollars in western Kansas specifically for helping encourage the entrepreneurial business growth through specialized 0% or low-interest rate loans and funding for community development projects  through the  (Phillips County E-community Fund) maintained at Network Kansas.  What a way to earmark your taxes to work toward something local and for business growth, rather than your taxes being delivered to the State of Kansas.   This will NOT affect the Kansas budget, as these tax credits have already been allocated within the State budget office via legislation 3 years ago.

At this time, it is very simple. We (PCED) needs to have a commitment from individuals and/or businesses that would like to acquire these tax credits through a donation to Network Kansas.   Check with your accountant first to see whether this tax credit will be an advantage to your individual or business tax situation.  If it is, they will recommend ‘how many’ you need.  Then contact the PCED office and let us know the information listed below.   These 2010 tax credits are in a refundable category as they can be rolled forward to future years, if not used in 2010.  The full amount is also deductable off your federal income taxes (most cases) due to the purchase going through a not-for-profit 501 c 3 organization (Center of Entrepreneurism – Network Kansas). 

In a nutshell, it is a great way to steer your tax dollars toward local projects.  Besides the direct impact on your Kansas Income Taxes, of which your donation (purchase) gains you 1-to-1 Kansas Tax Credits for the 75% of money donated, the other 25% difference is made up in the full amount of the donation paid being deductable off  Federal taxes (in most situations – especially if you itemize).   Here is an example: Your Kansas Income Taxes are estimated to be $750 dollars to be owed.  You make a donation of $1000 toward these tax credits to acquire the 1-to1 credits needed.  You will receive $750 dollars in Kansas Tax Credits (dollar for dollar) that is spoken for on a sheet of paper (the K-31 form – which is attached to your Income Tax form) showing you have redirected these $750 dollars of Kansas taxes to be used for a specific purpose (E-community funding for Phillips County).  The 25% difference is made up usually by the  federal income tax deduction given on the entire amount of $1000 dollars which reflects on your overall federal taxes.  Obviously, this impact varies for each business/individual, so make sure you visit with your tax preparer on this opportunity.

PCED will be contact point for collecting the donation checks for Network Kansas on these tax credits.  If you have already committed to tax credits, they you will need to send make out your check to: Network Kansas and in the remarks section denote – Phillips County E-Community.  Then mail or hand deliver your check to the PCED office:  P.O. Box 604, 205 F. Street, Suite 155, Phillipsburg, KS  67661.   Your donation check should be made out for 25% more than your needed tax credit amount.  Example:  Your accountant stated you needed $1000 credits, then you would write the check out for $1250 dollars (or 25% more), since this is a 75% tax credit; thereby, you get your full $1000 dollars of Kansas tax credits and can use the full $1250 as a deduction toward your federal taxes.

If more than $125,000 dollars of tax credits are committed cumulatively to this endeavor (Phillips County E-community Fund), Network Kansas has agreed to provide the same type of tax credits for the business/person needing them, AND the donations given will be directed toward the ‘Start-up Kansas Fund” (which is a state-wide, competitive loan program that Phillips County businesses have also used).  Any donations raised for the ‘Start-up Kansas” through Phillips County will allow 10% of those funds to come directly back as a ‘GRANT” to our local Network Kansas partners organizations.

This effort ‘not only’ helps establish a long term, entrepreneurial development loan fund for Phillips County businesses, but also brings monies which would be lost from this area by paying State Income Taxes, directly back in the form of ‘grants’ to our local, rural economy!!!  It also helps YOU recapture some of your federal taxes, and allows you to know you are helping out the local rural areas. 

 At this time, if you are interested in committing to tax credits… just send an e-mail to PCED (Director) and let us know the following…..

• Who are the 2010 Kansas Income Tax credits for:  (name of business or individual)
• Contact information for the (name of business or individual)
• Amount of Tax Credits desired: (minimum $250 and Maximum $50,000 – per entity or individual) 
  • There are no specified increments, so you could commit to $259 or $1113 or $49,999 – as long as you are above the minimum number and at or below the maximum figure.

I would  recommend visiting with your personal accountant/tax preparer to see how you might benefit by acquiring these tax credits, as every tax situation for businesses and individuals are unique.  These tax credits will not be available after December 14, 2010 – so get back to us as soon as possible, to earmark tax credits that you may need for 2010, if you are interested, in this way your commitments can be tallied and counted.  Our telephone number is 785-543-5809 or contact us via e-mailing the PCED Director.

Keep in mind that these tax credits can be utilized by Kansas Income Tax Payers – so if you have connections across the state that you know that could utilize these credits and would help out in this effort – Please – forward them this information, and encourage them to participate! 

Thanks for your time, attention and support in this effort!

Jeff Hofaker – PCED Director.