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INSTRUCTIONS FOR SCHEDULE K-86
GENERAL INSTRUCTIONS institutional purposes, and for internal use; sports event or sports
programming; gala presentation or awards programming;
K.S.A. 79-32,258 provides for a 30% tax credit for tax years infomercial or any production that directly solicits funds; political
commencing after December 31, 2006, against the income tax advertisement; or production that is considered obscene.
liability of an eligible film production company for direct production Film production company means a person that produces one
expenditures made in Kansas that are directly attributable to the or more films.
production of a film in Kansas.
The credit allowed shall be deducted from the taxpayer’s SPECIFIC LINE INSTRUCTIONS
income tax liability for the taxable year in which the expenditures
Enter all requested information at the top of this schedule.
are made. If the amount of the credit allowed by this section
exceeds the taxpayer’s income tax liability for such taxable year, PART A - COMPUTATION OF CREDIT
such excess may be carried over in the succeeding taxable years
until the total amount of the credit is used, except that no such tax LINE 1 – Enter total amount of direct production expenditures
made by an eligible production company this tax year.
credit shall be carried over for deduction after the third taxable
year succeeding the year in which the costs are incurred. LINE 2 – This percentage (30%) determines the maximum credit
To be eligible for the film production tax credit, a film production allowable by law.
company shall submit to the Kansas Department of Commerce LINE 3 – Enter the lesser of the amount of the credit reserved by
(KDOC) information as required by KDOC to demonstrate KDOC OR the amount on line 1 multiplied by line 2. This is
conformity with the requirements of K.S.A. 79-32,258. The the maximum allowable credit.
Department of Commerce may reserve a tax credit amount based LINE 4 – Partners, shareholders or members: Enter the percentage
on the expected direct production expenditures. The Department that represents your proportionate share in the partnership,
of Revenue (KDOR) may award a film production credit based on S corporation, LLC or LLP. All other taxpayers: Enter 100%.
the actual expenditures but will be limited to the amount of tax
LINE 5 – Multiply line 3 by line 4. This is your share of the total
credit reserved by KDOC. No film production tax credits shall be
credit for the amount expended this year.
allowed for any tax year commencing on or after January 1, 2013.
The total amount of film production tax credits allowed shall not PART B —COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR
exceed $2,000,000 per tax year.
LINE 6 – Enter the carry forward amounts available from prior
Direct production expenditure means an expenditure incurred year’s K-86 schedule.
in the state of Kansas in the production of a Kansas film including:
LINE 7 – Add lines 5 and 6.
1) payment of wages, fringe benefits or fees for talent,
management or labor to a person who is a Kansas LINE 8 – Enter the total Kansas tax liability for the current tax year
resident for purposes of the Kansas income tax act; after all previously claimed credits.
2) payment to a personal services corporation for the LINE 9 – Enter the lesser of line 7 or line 8. Enter this amount on
services of a performing artist, if: the appropriate line of Form K-40, K-41, or K-120.
• the personal services corporation is subject to taxation PART C —COMPUTATION OF CARRY FORWARD CREDIT
under the provisions of the Kansas income tax act; or
• the performing artist receiving payment from the personal LINE 10 – Subtract line 9 from line 7. This amount cannot be less
services corporation pays Kansas income tax; and than zero. Enter this amount on next year’s Schedule K-86.
3) any of the following provided by a vendor:
• the story and scenario to be used for a film; IMPORTANT: Do not send enclosures with this schedule,
• set construction and operations, wardrobe, however keep copies of important documentation with
accessories and related services; your records. KDOR reserves the right to request
• photography, sound synchronization, lighting and additional information as necessary.
related services;
TAXPAYER ASSISTANCE
• editing and related services;
• rental of facilities and equipment; Address questions about qualifying for this credit to:
• leasing of vehicles;
• food or lodging; Kansas Secretary of Commerce
• airfare if purchased through a Kansas-based travel Film Commission
agency or travel company; 1000 SW Jackson St, Suite 100
• insurance coverage and bonding if purchased Topeka KS 67504-0647
through a Kansas-based insurance agent; and Phone: 785-296-2178
• other direct costs of producing a film in accordance Website: kansascommerce.com
with generally accepted entertainment industry practice.
Eligible film production company means a film production For information and assistance in completing this schedule
company that has received certification from the KDOC. contact KDOR:
Film means any film, video, commercial or television Taxpayer Assistant Center
production, as approved by the KDOC, that is 30 minutes or less 120 SE 10th Ave
in length with an expected in-state expenditure budget in excess PO Box 750260
of $50,000, or that is over 30 minutes in length with an expected Topeka KS 66699-0260
in-state expenditure budget in excess of $100,000. Film shall not
include the following: news or current events programming; talk Phone: 785-368-8222
show; production produced primarily for industrial, corporate or Fax: 785-291-3614
Website: ksrevenue.org
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