Kansas State R&D Tax Credit
A nonrefundable income tax credit is allowed for qualifying expenditures in research and development activities conducted within Kansas.
Refundable Tax Credit – No
- 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
“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 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.
The amount of any remaining unused credit can be carried forward indefinitely until the total amount of the credit is used.
Beginning in 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.
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.
Find out if you qualify for the R&D tax credit
SELL YOUR NOL’s AND R&D CREDITS
If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
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