Instructions For Schedule K-59 printable pdf download

INSTRUCTIONS FOR SCHEDULE K-59

GENERALINFORMATION

Line 4: Enter the total dollar amount expended for payroll costs for both

full time and part time positions. This should correspond to the amount

reported on your Employers’ Quarterly Wage Report and Contribution

Schedule K-59 provides an investment schedule and a carry forward

Return, Form K-CNS 1001.

schedule. Please read all directions before completing this schedule.

The High Performance Incentive Program (HPIP) provides for two types

Line 5: Multiply line 4 by 2% and enter the result.

of credits: 1) Training and Education Credit (K.S.A. 74-50,132); and, 2)

Line 6: Subtract line 5 from line 3 and enter the result.

Investment Tax Credit (K.S.A. 79-32,160a(e)).

Line 7: Enter the amount from line 6 or $50,000, whichever is less. This is

Certification from the Kansas Department of Commerce (KDOC) is the

the total training and education credit for the amount of cash investment

initial requirement for either of the credits and must be maintained with your

made.

records.

Line 8: Partners, shareholders, or members must enter their proportionate

Training and Education Credit. A qualified firm that invests in the

share percentage in the partnership or S corporation. All other

taxpayers enter 100%.

training and education of its employees and pays higher than average

wages is eligible to receive a tax credit. The credit is the amount of training

Line 9: Enter on line 9 the lesser of line 7 multiplied by line 8 OR your

and education expenditures that exceed 2% of the wages, limited to

Kansas tax liability. This is the share of the credit for the amount

$50,000. The credit must be used in the tax year it is earned. There is no

invested this year. Enter this amount on the appropriate line of Form K

carry forward provision for this credit.

40, Form K-41, Form K-120, or Form K-130.

Investment Tax Credit. A qualified firm may be eligible to receive a

Apply this credit to your tax liability before any other credits.

10% investment tax credit for investment in excess of $50,000 in a Qualified

This amount cannot exceed your tax liability.

Business Facility (QBF). This credit may be carried forward for the next

PART C - HPIP INVESTMENT CREDIT

10 tax years as long as the firm is recertified in the tax year the carry

forward is used. Schedule K-59 must be completed for each QBF in the

Qualified business facility investment is the value of the real and tangible

initial year and, if necessary, for any carry forward year for each location.

personal property, except inventory or property held for sale to customers

in the ordinary course of the taxpayer’s business, which constitutes the

Do not send any enclosures with this credit schedule. If additional

qualified business facility, or which is used by the taxpayer in the operation

information is needed, the Department of Revenue reserves the

of the QBF, during the taxable year for which the HPIP investment tax

right to request it at a later date.

credit is claimed. The value of such property during the taxable year shall

A “qualified firm” is a for-profit business establishment, subject to

be: (1) its original cost if owned by the taxpayer; or (2) eight times the net

state income, sales or property taxes, identified:

annual rental rate if leased by the taxpayer.

• under the Standard Industrial Classification (SIC) codes as in effect

All three of the following conditions must be met for property to be

July 1, 1993, major groups 20 through 39 (or the appropriate North

eligible for the HPIP investment tax credit:

American Industry Classification System (NAICS) designation as in

• Only those expenditures for real and tangible personal property

effect October 1, 2000) major groups 40 through 51 (or the

made during the certification period will qualify for the credit:

appropriate NAICS designation), and major groups 60 through 89,

• The property must be capable of being used by the taxpayer or must

(or the appropriate NAICS designation); OR

be used by the taxpayer in the operation of the QBF during the

certification period (no property classified or defined as construction

• as a corporate or regional headquarters or back-office operation of

in process); and

a national or multinational corporation regardless of SIC code or

NAICS designation.

• Only that property identified on the capital investment project form

submitted to KDOC shall be eligible.

A business establishment may be assigned a SIC code or NAICS

designation according to the primary business activity at a single physical

Current Year Investment Calculation:

location in Kansas.

The QBF investment for HPIP purposes is computed based on a monthly

There are additional qualifications to meet the definition of “qualified

average of the HPIP qualified investment made during the certified or

firm.” Contact KDOC for information.

recertified months that fall within the taxpayer’s tax year. The investment

A “qualified business facility investment” is the value of the real

or expenditures must meet the qualifications listed above. This property

and tangible personal property, except inventory or property held for sale

will also be present in the property factor for apportionment purposes. The

to customers in the ordinary course of business, which constitutes the

QBF investment shall be determined by dividing the sum of the total

qualified business facility. See K.S.A. 79-32,154(e).

cumulative value of such HPIP property on the last business day of each

full calendar month during the portion of the taxable year during which the

“Corporate headquarters” is a facility where principal officers of

QBF was in operation by the number of full calendar months the QBF is in

the corporation are housed and from which direction, management or

operation.

administrative support for transactions is provided.

Base Year Investment Calculation:

LINE BY LINE INSTRUCTIONS

For investment in a QBF, which facility existed and was operated by the

taxpayer prior to the investment, a base amount of investment will be

PART A – GENERAL INFORMATION

deducted from the current year’s HPIP investment average. The base shall

consist of the average HPIP investment made by the taxpayer in all prior

Line 1: Enter the period certified by KDOC.

years at this QBF. This property will also be present in the property factor

Line 2: Enter the certification number received from KDOC.

for apportionment purposes. The base QBF investment for HPIP purposes

PART B – HPIP TRAINING AND EDUCATION CREDIT

shall be determined by dividing the sum of the total cumulative value of

such HPIP property on the last business day of each full calendar month

The training and education credit is authorized through the High

during the portion of the prior taxable year during which the QBF was in

Performance Incentive Program (HPIP) and shall be claimed in the tax year

operation by the number of full calendar months the QBF was in operation.

for which the company is certified. If the HPIP certification period should

Only HPIP QBF investment that is related to the facility will be in the base.

overlap two tax years, the taxpayer shall have the choice of which tax

Line 10: Enter the street address and city of the qualified business

year to claim the training and education tax credit.

facility.

Line 3: Enter the total qualified business cash investment in the training

Lines 11a through 11l:

and education of the qualified firm’s employees during the 12-month

Column (1) – Filing Period: Enter the months in the order of the filing

measurement period specified on your HPIP eligibility form or certification

period being used by the legal entity.

letter. Do not include spending used to match the state’s Kansas Industrial

Column (2) – Base year-QBF Monthly Investment: In the heading

Retraining (KIR) program.

Instructions For Schedule K-59

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