Kansas R&D Tax Credits
Find out if you qualify for R&D tax credits in Kansas and recharge your business
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, 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 carry forward. 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.
R&D Tax Credit Available:
Deadline for Tax Filing:
Due with Kansas Tax Return
Data Required to Compute Credit:
Claim Period Nebraska Qualified R&D Expenses (QREs)
Indefinite (until credit is used up)
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.
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.