Fillable Schedule K-53 - Kansas Research And Development Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-53

GENERAL INFORMATION

LINE 6 – Multiply line 5 by 6.5% (.065). This is the total credit.

LINE 7 – Multiply line 6 by 25% (.25). This is the maximum credit

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

allowed in any one tax year.

tax liability if the taxpayer had qualifying expenditures in research

and development activities conducted within Kansas (K.S.A.

PART B-COMPUTATION OF ALLOWED CREDIT

79-32,182b). Qualifying expenditures are expenditures made

FOR THIS YEAR’S EXPENDITURES

for research and development purposes (other than

expenditures of monies made available to the taxpayer pursuant

LINE 8 — Enter amount of your Kansas tax liability for this year.

to federal or state law), which are expenses allowable for

LINE 9 – Enter the lesser of line 7 or line 8. This is the credit

deduction under the provisions of the federal Internal Revenue

allowed for expenditures made during this tax year.

Code of 1986 and amendments thereto.

The allowable credit is 6.5% of the amount by which the

PART C - COMPUTATION OF CARRY FORWARD CREDIT

amount expended for the activities in the taxable year exceeds

the taxpayer’s average of the actual expenditures. This is for the

LINE 10 – Subtract line 9 from line 6. This is the amount of credit

activities made in the taxable year and the two immediate

to be carried forward.

preceding taxable years.

The amount of credit allowable in any one taxable year is

PART D-COMPUTATION OF CREDITS FROM PRIOR YEARS

limited to 25% of the total amount of the credit plus any applicable

carry forward. The amount of any remaining unused credit may

If additional columns are necessary, please enclose a

separate schedule. You will need copies of your Schedule

be carried forward until the total amount of the credit is used.

K-53 forms from prior years to complete this section.

For tax year 2013, and all tax years thereafter, new

credits shall be available to only corporations that

LINE 11 – Enter the year end date of the original Schedule

are subject to the Kansas corporate income tax (i.e.,

K-53 for which you are claiming a carry forward credit.

C corporations). New credits shall no longer be available to

LINE 12 – Enter the amount of carry forward from the original

individuals, partnerships, S corporations, limited liability

Schedule K-53 for the year shown on line 13.

companies, and other pass-through entities.

LINE 13 – Enter the total amount of line 12 which you have

Carry Forward of Unused Credits: If this credit was earned

previously claimed as a credit.

prior to tax year 2013 and a carry forward credit remains available

LINE 14 – Enter the years you previously claimed the credit.

to a taxpayer, that taxpayer may continue to claim that credit.

However, that carry forward credit shall be subject to limitations

LINE 15 – Subtract line 13 from line 12. This is the amount of

and requirements in place at the time the credit was earned.

carry forward remaining from the prior K-53 schedules.

Be sure to keep an itemized schedule of expenditures for

LINE 16 – Enter the maximum credit allowable in any one

amounts claimed on lines 1, 2a and 2b. KDOR (Kansas

year from the original Schedule K-53 for the year shown on

Department of Revenue) reserves the right to request this

line 11.

information as necessary.

LINE 17 – Enter the lesser of line 15 or line 16. This is the

amount of carry forward available to this return from each

SPECIFIC LINE INSTRUCTIONS

year shown on line 11.

Enter the taxpayer’s name and Social Security number or

LINE 18 – Add line 17, columns (A) through (D) (plus additional

federal Employer Identification Number (EIN) in the space

columns if applicable) and enter the result. This is the total

provided. If the person claiming this credit is a partner or

amount of carry forward credit available to this tax year.

shareholder in a partnership, LLC, S Corporation, etc., enter the

LINE 19 – Enter total Kansas tax liability for the current tax year

name and EIN of that entity.

after all previously claimed credits.

PART A – COMPUTATION OF MAXIMUM ALLOWABLE CREDIT

FOR THIS YEAR’S EXPENDITURES (C Corporations only)

PART E – COMPUTATION OF TOTAL CREDIT CLAIMED

THIS TAX YEAR

LINE 1 – Mark the box that best describes your research and

development expenditures for the current year.

LINE 20 – Enter the lesser of the sum of lines 9 and 18 or line

LINE 2a – Enter the total allowable research and development

19. Enter this amount on the appropriate line of Form K-40,

expenditures for activities conducted within Kansas for the

Form K-41, or Form K-120.

first tax year preceding the current taxable year.

TAXPAYER ASSISTANCE

LINE 2b – Enter the total allowable research and development

expenditures for activities conducted within Kansas for the

For assistance in completing this schedule contact KDOR:

second tax year preceding the current taxable year.

Tax Operations

LINE 3 – Add lines 1, 2a, and 2b and enter the result on line 3.

Docking State Office Building, 1st fl.

915 SW Harrison St.

LINE 4 – Divide line 3 by three (3). This is the amount of average

Topeka, KS 66612-1588

expenditures.

Phone: (785) 368-8222

LINE 5 – Subtract line 4 from line 1. This is the amount of

Fax: (785) 291-3614

expenditures eligible for the credit. If line 1 is less than or

equal to line 4, enter zero on line 5.

Web site:

Schedule K-53 - Kansas Research And Development Credit Page 2

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