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INSTRUCTIONS FOR SCHEDULE K-87
GENERAL INFORMATION LINE 3 – Multiply line 1 by line 2, and enter the result here. Do not
enter more than $100,000.
K.S.A. 79-32,262 provides an income, privilege or premiums tax LINE 4 – Enter the amount of credit approved by KDOR (Kansas
credit for tax years 2008, 2009 and 2010 for any taxpayer who Department of Revenue). This is line 4 minus line 7 from the
makes a capital investment in a business that is located in the city previous year’s K-87 credit schedule. The pre-approved
limits, or within one mile of, the following Kansas cities: Chanute, amount must be from the same Certificate Number as entered
Coffeyville, Erie, Fredonia, Greensburg, Independence, Iola, in the header.
Neodesha or Osawatomie. The investment must be made within
three years of the date of the disaster’s occurrence which is the LINE 5 – Available credit. Enter the lesser of lines 3 or 4 here.
subject of major disaster declaration DR 1699 or DR 1711. The LINE 6 – Partners, shareholders or members: Enter the percentage
credit shall not exceed 10% of the investment. The total amount of that represents your proportionate share in the partnership,
credit allowed for any one taxpayer shall not exceed $100,000. In S corporation, LLC or LLP. All other taxpayers: Enter 100%.
no event shall the total amount of credits or refunds exceed LINE 7 – Your share of the credits. Multiply line 5 by line 6, and
$5,000,000 for any one fiscal year. enter the result here.
The amount of credit shall be reduced by an amount equal to If you are electing to use the refund option
any assistance payment received by the taxpayer from the skip lines 8 through 11 and proceed to Part C.
Southeast Kansas Business Restoration Assistance Program, or
from the Kiowa County Business Assistance Program. No taxpayer PART B - COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
shall claim more than one credit for the same investment, except
that nothing shall prevent a taxpayer from making a claim for and LINE 8 – Prior year’s carry forward. Enter the amount of available
being allowed credit in a subsequent tax year when such taxpayer carry forward from the prior year’s Schedule K-87. (Make no entry
was not allowed the credit in a previous tax year. If the amount of for tax year 2008.)
this tax credit exceeds the income, privilege or premium tax liability LINE 9 – Total credit available this tax year. Add lines 7 and 8 and
for the taxpayer for any taxable year in which the qualified enter the result.
investment is made, the excess credit may be carried over for LINE 10 – Enter your total Kansas tax liability for this tax year after
deduction from such taxpayer’s tax liability in the next succeeding all credits other than this credit.
year or years until the total amount of the credit has been deducted
LINE 11 – Amount of credit this tax year. Enter the lesser of lines
from the tax liability, except that no such credit shall be carried over
9 or 10. Enter this amount on the appropriate nonrefundable
for deduction after the 10th taxable year succeeding the taxable
credit line of Form K-40, K-41, K-120 or K-130. Skip lines 12
year in which the qualified investment was made.
through 14 and proceed to line 15.
A taxpayer may receive a refund in lieu of the above described
nonrefundable credit. The refund shall be 50% of the computed PART C - COMPUTATION FOR REFUNDABLE PORTION OF CREDIT
credit. The amount of refund shall also be reduced by an amount
equal to any assistance payments received by the taxpayer. Should LINE 12 – Your share of the credit for the capital investments.
the taxpayer elect to receive the cash in lieu of the credit, the Enter the amount from line 9 above.
remaining portion of the tax credit shall be lost. Any refund shall be LINE 13 – The authorized refundable credit percentage is 50%.
allowed against the tax liability in the tax year the qualified LINE 14 – Amount of credit to be refunded. Multiply line 12 by
investment is placed into service. line 13 and enter the result here, and on the appropriate
refundable credit line of Form K-40, K-41, K-120, or K-130.
IMPORTANT: Before you can claim this credit on Form
K-87, the amount of credit MUST BE APPROVED by PART D - COMPUTATION OF CREDIT CARRY FORWARD
KDOR (Kansas Department of Revenue). An on-line
application can be found at: ksrevenue.org LINE 15 – Amount of excess credit available to carry forward to
next year’s return. Subtract line 11 from line 9 and enter the
result here and on line 8 of next year’s Schedule K-87.
SPECIFIC LINE INSTRUCTIONS
Enter all requested information at the top of this schedule. IMPORTANT: Do not send enclosures with this schedule,
however keep copies of important documentation with
PART A - COMPUTATION OF CREDIT your records. KDOR reserves the right to request
additional information as necessary.
LINE 1 – Amount of capital investment in a business which is
located in the city of Chanute, Coffeyville, Erie, Fredonia, TAXPAYER ASSISTANCE
Greensburg, Independence, Iola, Neodesha or Osawatomie,
For assistance in completing this schedule contact KDOR:
Kansas or within one mile of the city limits of these cities.
Do not include investment for which you have received, or Taxpayer Assistance Center
will receive, assistance through the Southeast Kansas 120 SE 10th Ave
Business Restoration Assistance Program or from the Kiowa PO Box 750260
County Business Restoration Assistance Program. Topeka KS 66699-0260
LINE 2 – The authorized credit percentage is 10%. Phone: 785-368-8222
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