Instructions For Schedule K-59 (Page 3 of 3) in pdf

of Column (2), enter the tax year prior to the tax period of the qualifying

Line 19: Enter the number of actual jobs that have been retained by this

credit (Base). Lines 11a through 11l of Column (2) are used to compute

taxpayer during this tax period that would have been eliminated if not

activity at the QBF prior to the year in which a credit is qualified. This

for this qualified business facility investment.

prior year is referred to as the “base” year. If the QBF was in operation

Line 20: Enter the total compensation paid during this tax period for the

in the prior year and the taxpayer had been certified previously under

employee(s) identified on line 19.

the HPIP program, enter the total cumulative value of HPIP investment at

Line 21: Enter the income or loss generated during this tax period as a

this QBF on the last business day of each full calendar month during

direct result of the qualified business facility investment made.

the portion of the preceding tax year during which the QBF was in

Line 22: Enter the sales generated during this tax period as a direct result

operation.

of the qualified business facility investment made.

Column (3) – Qualifying Year-QBF Monthly Investment: In the

Line 23: Enter the entity’s total number of employees in the state of

heading of Column (3), enter the tax year you are establishing the

Kansas for this tax period.

current credit. On lines 11a through 11l, enter the total cumulative value

Line 24: Enter the total amount of compensation paid during this tax

of HPIP investment on the last business day of each full calendar month

period for the total number of employees on line 23.

of operation at the QBF during the portion of the taxable year the QBF

was in operation. If the QBF was in operation for only three full months

PART E - CARRY FORWARD SCHEDULE

during the tax year, you would enter the investment for those three

This schedule will track the credit carry forward available for this

months.

particular investment credit. You will complete a new line for each tax

Line 11m: For each Column, (2) and (3), add the amounts on lines 11a

year the credit is carried forward, on the same schedule, until the credit is

through 11l and enter the result on line 11m.

exhausted or the 10 succeeding tax years have lapsed. Once a credit is

Line 11n: For each Column, (2) and (3), divide the total in line 11m by the

established, any succeeding tax year in which the carry forward credit is

number of full months the QBF was in operation.

not claimed will be considered as one of the 10 succeeding tax years.

Line 11o: For each Column, (2) and (3), enter the value of the property

To claim remaining carry forward the taxpayer must be recertified by

rented by the taxpayer and used at the QBF. Rented property is valued

KDOC for the majority of the tax year in which the carry forward is to be

at eight times the net annual rental rate.

claimed, except that no carry forward shall be allowed for deduction after

Line 11p: For each Column, (2) and (3), add lines 11n and 11o.

the 10

taxable year succeeding the taxable year in which the credit

Line 11q: Enter the base amount shown on line 11p, Column (2).

initially was claimed.

Line 11r: For Column (3), subtract line 11q from line 11p.

When claiming a carry forward credit, you will need to submit the first

Line 11s: Minimum investment allowed is $50,000.

page of Schedule K-59, with the taxpayer information as contained in the

Line 11t: Subtract $50,000 from line 11r in Column (3).

header, and lines 10, 13, 14, 15, 16, PART D and PART E completed.

Line 11u: Multiply line 11t, Column (3), by 10% and enter the result.

Lines 25 through 34:

Line 12: Partners, shareholders or members must enter their ownership

a. Tax Year – For line 25, enter the first tax year following the tax

percentage in the partnership or S corporation. All other taxpayers

year the credit was computed. For lines 26 through 34, enter the

enter 100%.

next consecutive tax year.

Line 13: Multiply line 11u by line 12. If you are completing this form to use

b. Certification No. – Enter the certification or recertification

available carry forward only, enter the amount of the available credit

number from KDOC for this tax year entered on line a.

forward from the prior tax year.

c. Certification Period – Enter the time period covered under the

Line 14: Enter the total Kansas tax liability for the current tax year after all

certification or recertification for the tax year.

previously claimed credits (including the HPIP Training and Education

d. Carry Forward Amount – For line 25, enter the amount from

Tax Credit calculated in PART B plus any prior year carry forward

PART C, line 16. For lines 26 through 34, enter the amount of

available).

available credit forward from the prior tax year until the 10

Line 15: Enter the lesser of line 13 or line 14. This is the amount of credit

succeeding tax years have expired or total carry forward has

that can be used this tax period. Enter this amount on the appropriate

been used.

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

Line 16: Subtract line 15 from line 13. Do not enter an amount less than

Follow the instructions on Line 13 to calculate the amount

zero. This is the amount of credit to be carried forward. PART D will

of credit to be used this tax year.

need to be completed for the next tax period. Enter this carry forward

amount on PART D, line d of the appropriate tax year.

e. Credit Used – Enter the credit amount to be applied against the

tax liability of the tax year and include it on line 15.

NOTE: If you claim the investment tax credit allowed on line 15, Schedule

f. Carry Forward Available – Subtract line e from line d. This is

|K-59, you may not claim a business and job development credit on Schedule

the amount of credit available for the next tax year. Enter this

K-34 using the same QBF investment.

amount on line 16.

PART D - NEW INVESTMENT INFORMATION

TAXPAYERASSISTANCE

Lines 17 through 24: K.S.A. 79-32,243 requires that the Kansas

Questions you may have about qualifying for the high performance

Department of Revenue collect specific information for all taxable years

incentive program should be addressed to:

commencing after December 31, 2005. The information collected will

Kansas Department of Commerce

be used by the department in evaluating the effectiveness of the High

1000 SW Jackson, Suite 100

Performance Incentive Program tax credits.

Topeka, KS 66612-1354

It is important that the information provided in Part D is for the entity

Phone: (785) 296-5298

claiming the tax credit. If you are completing Schedule K-59 for carry

forward purposes only, you should complete lines 17-24 for the number

For assistance in completing this schedule contact:

of jobs created or retained, associated payroll, revenue and sales

Taxpayer Assistance Center

Docking State Office Building – 1 st Floor

generated during this tax period, not cumulative from the beginning of

this credit.

915 SW Harrison St.

Topeka, KS 66625-2007

Line 17: Enter the number of actual jobs this taxpayer has created during

Phone: (785) 368-8222

this tax period as a direct result of the qualified business facility

Hearing Impaired TTY: (785) 296-6461

investment made.

Additional copies of this schedule and other tax forms are available

Line 18: Enter the total compensation paid during this tax period for the

from our office or web site at

employees identified on line 17.

Instructions For Schedule K-59 Page 3

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