Kansas R&D Tax Credit Summary

KANSAS R&D TAX CREDIT SUMMARY

Kansas State R&D Tax Credit

A nonrefundable income tax credit is allowed for qualifying expenditures in research and development activities conducted within Kansas.

The amount of the credit is 6.5% of the amount by which the amount expended for such activities in the tax year exceeds the taxpayer’s average of the actual expenditures for such activities made in the tax year and the two immediately preceding tax years
For all tax years 2013 and after, the tax credit is available to corporations only
The credit in any one year is limited to 25% of the total amount of the credit plus any applicable carry forward

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“Expenditures in research and development activities” are expenditures made for research and development purposes (but not expenditures of monies made available to the taxpayer under federal or state law) that are expenses allowable for a deduction, except that for taxable years commencing after December 31, 2013, expenditures in research and development activities cannot include any expenditures for the performance of any abortion.

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How to Obtain the Credit?

The research and development credit is claimed by completing Form K-53 and attaching it to the taxpayer’s Kansas income tax return.

Refundable/Transferable Tax Credit – No

Carryforward

The amount of any remaining unused credit can be carried forward indefinitely until the total amount of the credit is used.

Flow-Through Entities

Beginning in the tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.

Kansas R&D Tax Credit Summary