- 2 -
|
INSTRUCTIONS FOR SCHEDULE K-53
GENERAL INSTRUCTIONS LINE 5 – Subtract line 4 from line 1. This is the amount of
expenditures eligible for the credit. If line 1 is less than or
A credit may be deducted from a taxpayer’s Kansas income equal to line 4, enter zero on line 5.
tax liability if the taxpayer had qualifying expenditures in research
and development activities conducted within Kansas (K.S.A. 79- LINE 6 – Multiply line 5 by 6.5% (.065). This is the total credit.
32,182b). Qualifying expenditures are expenditures made for LINE 7 – Multiply line 6 by 25% (.25). This is the maximum credit
research and development purposes (other than expenditures allowed in any one tax year.
of monies made available to the taxpayer pursuant to federal or PART B – COMPUTATION OF ALLOWED CREDIT FOR THIS
state law), which are expenses allowable for deduction under YEAR’S EXPENDITURES
the provisions of the federal Internal Revenue Code of 1986 and – Enter amount of your Kansas tax liability for this year.
LINE 8
amendments thereto.
The allowable credit is 6.5% of the amount by which the LINE 9 – Enter the lesser of line 7 or line 8. This is the credit
amount expended for the activities in the taxable year exceeds allowed for expenditures made during this tax year.
the taxpayer’s average of the actual expenditures. This is for PART C – COMPUTATION OF CARRY FORWARD CREDIT
the activities made in the taxable year and the two immediate
preceding taxable years. LINE 10 – Subtract line 9 from line 6. This is the amount of credit
The amount of credit allowable in any one taxable year is to be carried forward.
limited to 25% of the total amount of the credit plus any applicable PART D – COMPUTATION OF CREDITS FROM PRIOR YEARS
carry forward. The amount of any remaining unused credit may
be carried forward until the total amount of the credit is used. If additional columns are necessary, please enclose a separate
For tax year 2013, and all tax years thereafter, new credits schedule. You will need copies of your Schedule K-53 forms from
shall be available to only corporations that are subject to the prior years to complete this section.
Kansas corporate income tax (i.e., C corporations). New credits LINE 11 – Enter the year end date of the original ScheduleK-53
are not available to individuals, partnerships, S corporations, for which you are claiming a carry forward credit.
limited liability companies, and other pass-through entities.
Carry Forward of Unused Credits: If this credit was earned prior LINE 12 – Enter the amount of carry forward from the original
to tax year 2013 and a carry forward credit remains available Schedule K-53 for the year shown on line 11.
to a taxpayer, that taxpayer may continue to claim that credit. LINE 13 – Enter the total amount of line 12 which you have
However, that carry forward credit shall be subject to limitations previously claimed as a credit.
and requirements in place at the time the credit was earned. – Enter the years you previously claimed the credit.
LINE 14
Be sure to keep an itemized schedule of expenditures
for amounts claimed on lines 1, 2a and 2b. KDOR (Kansas LINE 15 – Subtract line 13 from line 12. This is the amount of
Department of Revenue) reserves the right to request this carry forward remaining from the prior K-53 schedules.
information as necessary. LINE 16 – Enter the maximum credit allowable in any one year
K.S.A. 74-50,227 requires the collection of certain tax incentive from the original Schedule K-53 for the year shown on line 11.
information for publication on a database managed by the Kansas
Department of Commerce. Information collected will include the LINE 17 – Enter the lesser of line 15 or line 16. This is the amount
name and address, including county of the recipient receiving the of carry forward available to this return from each year shown
benefits from the tax incentive program, the annual amount of on line 11.
incentive claimed, distributed or received, qualification criteria for LINE 18 – Add line 17, columns (A) through (D) (plus additional
the incentive, and required benchmarks for continued participation columns if applicable) and enter the result. This is the total
in the program and progress made towards the benchmarks. amount of carry forward credit available to this tax year.
SPECIFIC LINE INSTRUCTIONS LINE 19 – Enter total Kansas tax liability for the current tax year
after all previously claimed credits.
Enter the taxpayer’s name and Social Security number or federal
Employer Identification Number (EIN) in the space provided. If PART E – COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR
the person claiming this credit is a partner or shareholder in a
partnership, LLC, S Corporation, etc., enter the name and EIN LINE 20 – Enter the lesser of the sum of lines 9 and 18 or line 19.
of that entity. Enter this amount on the appropriate line of Form K-40, Form
K-41, or Form K-120.
PART A – COMPUTATION OF MAXIMUM ALLOWABLE CREDIT
FOR THIS YEAR’S EXPENDITURES (C Corporations only) TAXPAYER ASSISTANCE
LINE 1 – Mark the box that best describes your research and For assistance in completing this schedule contact the Kansas
development expenditures for the current year. Department of Revenue:
LINE 2a – Enter the total allowable research and development Taxpayer Assistance Center
expenditures for activities conducted within Kansas for the Scott Office Building
first tax year preceding the current taxable year. 120 SE 10th Ave
LINE 2b – Enter the total allowable research and development PO Box 750260
expenditures for activities conducted within Kansas for the Topeka KS 66699-0260
second tax year preceding the current taxable year. Phone: 785-368-8222
LINE 3 – Add lines 1, 2a, and 2b and enter the result on line 3. Fax: 785-291-3614
LINE 4 – Divide line 3 by three (3). This is the amount of average Additional copies of this credit schedule and other tax forms
expenditures. are available from our website at: ksrevenue.gov
|