Schedule K-55 - Venture And Local Seed Capital Credit (Page 2 of 2) in pdf

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INSTRUCTIONS FOR SCHEDULE K-55

LINE 5—Multiply line 3 by line 4 and enter the result. This is

GENERAL INFORMATION

your total credit for the amount invested this year.

A credit may be deducted from a taxpayer’s income or

LINE 6—Enter the total Kansas tax liability for the current

privilege tax liability if the taxpayer invests in stock issued by

tax year after all credits other than the credit allowed for

Kansas Venture Capital, Inc. (K.S.A. 74-8205). The taxpayer

investments made during this tax year.

may also modify from federal taxable income any dividend

income on stock issued by Kansas Venture Capital, Inc.

LINE 7—Enter the amount from line 5 or line 6, whichever

is less. This is the maximum credit allowed for

A credit may also be deducted from a taxpayer’s income

investments made during this tax year.

tax liability if the taxpayer invests in a certified local seed

capital pool if that investment was made after December

PART B – COMPUTATION OF CARRY FORWARD CREDIT

31, 1986 (K.S.A. 74-8401 et seq.). Local seed capital pool

means money invested in a fund established to provide

LINE 8—Enter the total credit for the amount invested this

funding for use by Kansas small businesses for any one of

year from line 3.

the following purposes: 1) development of a prototype

LINE 9—Enter the carry forward amounts available from

product or process; 2) a marketing study to determine the

prior years (line 10 of prior year K-55 schedules). Enclose

feasibility of a new product or process; or 3) a business

or fax a copy of the K-55 schedules from prior years.

plan for the development and production of a new product

or process. These local seed capital pools may be certified

LINE 10—Add lines 8 and 9. Enter the result.

by the Secretary of Commerce by meeting certain criteria.

LINE 11—Enter the amount of your total Kansas tax liability

The amount of credit for any of these types of investments

for the current tax year after all credits other than this

is 25% of the total amount of cash investment in such stock.

credit.

The amount of credit, which exceeds the taxpayer’s tax

liability in any one taxable year, may be carried forward until

LINE 12—Subtract line 11 from line 10 and enter result.

the total amount of credit is used.

This amount cannot be less than zero.

SPECIFIC LINE INSTRUCTIONS

PART C – COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR

Complete all the requested information at the top of

LINE 13 – Enter the lesser of the sum of lines 7 and 9 or the

Schedule K-55.

amount on line 6. Enter this amount on the appropriate

line of Forms K-40, K-120 or K-130.

PART A

COMPUTATION OF CREDIT FOR THIS YEAR’S INVESTMENT

LINE 1—Enter the total amount of cash investment made

TAXPAYER ASSISTANCE

this tax year.

For assistance in completing this schedule contact the

LINE 2—This percentage determines the maximum credit

Kansas Department of Revenue:

allowable as a result of the investment made during this

tax year. Do not make an entry on this line.

Tax Operations

LINE 3—Multiply line 1 by line 2 and enter the result. This is

Docking State Office Building, 1st fl.

the maximum credit allowable.

915 SW Harrison St.

Topeka, KS 66625-2007

LINE 4—Partners, shareholders or members: Enter the

percentage that represents your proportionate share in

Phone: (785) 368-8222

the partnership, S corporation, LLC or LLP. All other

Fax: (785) 291-3614

taxpayers: Enter 100%.

Web site:

Schedule K-55 - Venture And Local Seed Capital Credit Page 2

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