Kansas R&D Tax Credits

Beginning in tax year 2013, the Research and Development Credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. An R&D credit is not available to individuals, partnerships, S corporations, limited liability companies (LLCs), and other pass-through entities.

The Kansas R&D credit allows a taxpayer who incurs qualified R&D expenditures associated with activities conducted in Kansas to claim a credit against their corporate income tax liability. Qualified Research Activities (QRAs) are defined as having the intent to discover information that eliminates technical uncertainty concerning the development or improvement of a product, process, technique, formula, or invention.

Utilization of the Kansas R&D credit is limited to 25% of the credit plus any carryforward.  Any remaining unused credit may be carried forward in 25% increments until the total amount of credit is used. In other words, a C-Corp with sufficient tax liability must spread the credit utilization out over four tax periods.

The credit is claimed using Kansas Schedule K-53.

Learn more about the Kansas R&D Tax Credit here.

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R&D Tax Credit Available:

Yes

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Eligible Entities:

C-Corporations only

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Deadline for Tax Filing:

Due with Kansas Tax Return

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Data Required to Compute Credit:

Claim Period Kansas Qualified R&D Expenses (QREs)

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Credit Carryforward:

Indefinite (until credit is used up)

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The R&D tax credit equals:

• 6.5% of the difference between Kansas QREs in claim period and the average Kansas QREs from the prior two tax periods.

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Specific Items to Note:

• The Kansas credit utilization is limited to 25% of the credit in a tax year.
• Any remaining credit can be carry forwarded in 25% increments until the entire credit is used.