Kansas Research and Development Credit

Research and Development Credit
K-53 Kansas Research and Development Credit Rev. 8-20
K-53

KANSAS

(Rev. 8-20)

191218

RESEARCH AND DEVELOPMENT CREDIT

For the taxable year beginning

________________________________

, 20______ ; ending

________________________________

, 20 _______

Name of taxpayer (as shown on return)

Social Security Number or Employer ID Number (EIN)

If partner, shareholder or member, enter name of partnership, S corporation, LLC or LLP

Employer ID Number (EIN)

PART A – COMPUTATION OF MAXIMUM ALLOWABLE CREDIT FOR THIS YEAR'S EXPENDITURES (C Corporations only)
1. Research and development expenditures for current year.

o Machinery and Equipment
o Payroll
2. Research and development expenditures for the:
a. first preceding taxable year.

o Other

1.

____________________________

2a.

____________________________

2b.

____________________________

3. Total (add lines 1, 2a, and if applicable 2b, and enter the total on line 3; see instructions).

3.

____________________________

4. Average (divide line 3 by 3). This is your average expenditure over the last three years.

4.

____________________________

5. Expenditure amount for credit (subtract line 4 from line 1; cannot be less than zero).

5.

____________________________

6. Total research and development credit (multiply line 5 by 6.5% or .065).

6.

____________________________

7. Maximum allowable credit in any one year (multiply line 6 by 25% or .25).

7.

____________________________

8.

____________________________

9.

____________________________

10.

____________________________

b. second preceding taxable year, if applicable (see instructions).

PART B – COMPUTATION OF ALLOWED CREDIT FOR THIS YEAR'S EXPENDITURES
8. Amount of your tax liability for this tax year after all other credits other than this credit.
9. Amount of credit allowable as a result of expenditures made this tax year (enter amount from
line 7 or line 8, whichever is less).

PART C – COMPUTATION OF CARRY FORWARD CREDIT
10. Amount of carry forward allowed (subtract line 9 from line 6).

PART D – COMPUTATION OF CREDITS FROM PRIOR YEARS
(A)
11. Year end date of original K-53 for which a carry over
is being claimed.

11.

12. Amount of carry over from the original K-53 for the
year shown on line 11.

12.

13. Amount of line 12 which has previously been used
as a credit.

13.

14. Year(s) credit was used.

14.

15. Carry forward remaining (line 12 minus line 13).

15.

16. Maximum credit allowable in any one year from
original K-53 for the year shown on line 11.

16.

17. Amount of carry forward available to this return
(lesser of line 15 or line 16).

17.

(B)

(C)

(D)

18. Total carry forward amount available (add line 17, columns A through D).

18.

____________________________

19. Amount of tax liability for current taxable year after all previously claimed credits.

19.

____________________________

20.

____________________________

PART E – COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR
20. Enter the lesser of the sum of lines 9 and 18 or line 19. Enter this amount on the appropriate
line of Form K-40, Form K-41, or Form K-120.

INSTRUCTIONS FOR SCHEDULE K-53
GENERAL INSTRUCTIONS
A credit may be deducted from a taxpayer’s Kansas income
tax liability if the taxpayer had qualifying expenditures in research
and development activities conducted within Kansas (K.S.A. 7932,182b). Qualifying expenditures are expenditures made for
research and development purposes (other than expenditures
of monies made available to the taxpayer pursuant to federal or
state law), which are expenses allowable for deduction under
the provisions of the federal Internal Revenue Code of 1986 and
amendments thereto.
The allowable credit is 6.5% of the amount by which the
amount expended for the activities in the taxable year exceeds
the taxpayer’s average of the actual expenditures. This is for
the activities made in the taxable year and the two immediate
preceding taxable years.
The amount of credit allowable in any one taxable year is
limited to 25% of the total amount of the credit plus any applicable
carry forward. The amount of any remaining unused credit may
be carried forward until the total amount of the credit is used.
For tax year 2013, and all tax years thereafter, new credits
shall be available to only corporations that are subject to the
Kansas corporate income tax (i.e., C corporations). New credits
are not available to individuals, partnerships, S corporations,
limited liability companies, and other pass-through entities.
Carry Forward of Unused Credits: If this credit was earned prior
to tax year 2013 and a carry forward credit remains available
to a taxpayer, that taxpayer may continue to claim that credit.
However, that carry forward credit shall be subject to limitations
and requirements in place at the time the credit was earned.
Be sure to keep an itemized schedule of expenditures
for amounts claimed on lines 1, 2a and 2b. KDOR (Kansas
Department of Revenue) reserves the right to request this
information as necessary.
K.S.A. 74-50,227 requires the collection of certain tax incentive
information for publication on a database managed by the Kansas
Department of Commerce. Information collected will include the
name and address, including county of the recipient receiving the
benefits from the tax incentive program, the annual amount of
incentive claimed, distributed or received, qualification criteria for
the incentive, and required benchmarks for continued participation
in the program and progress made towards the benchmarks.

SPECIFIC LINE INSTRUCTIONS
Enter the taxpayer’s name and Social Security number or federal
Employer Identification Number (EIN) in the space provided. If
the person claiming this credit is a partner or shareholder in a
partnership, LLC, S Corporation, etc., enter the name and EIN
of that entity.
PART A – COMPUTATION OF MAXIMUM ALLOWABLE CREDIT
FOR THIS YEAR’S EXPENDITURES (C Corporations only)

LINE 5 – Subtract line 4 from line 1. This is the amount of
expenditures eligible for the credit. If line 1 is less than or
equal to line 4, enter zero on line 5.
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
allowed in any one tax year.
PART B – COMPUTATION OF ALLOWED CREDIT FOR THIS
YEAR’S EXPENDITURES
LINE 8 – Enter amount of your Kansas tax liability for this year.
LINE 9 – Enter the lesser of line 7 or line 8. This is the credit
allowed for expenditures made during this tax year.
PART C – COMPUTATION OF CARRY FORWARD CREDIT
LINE 10 – Subtract line 9 from line 6. This is the amount of credit
to be carried forward.
PART D – COMPUTATION OF CREDITS FROM PRIOR YEARS
If additional columns are necessary, please enclose a separate
schedule. You will need copies of your Schedule K-53 forms from
prior years to complete this section.
LINE 11 – Enter the year end date of the original ScheduleK-53
for which you are claiming a carry forward credit.
LINE 12 – Enter the amount of carry forward from the original
Schedule K-53 for the year shown on line 11.
LINE 13 – Enter the total amount of line 12 which you have
previously claimed as a credit.
LINE 14 – Enter the years you previously claimed the credit.
LINE 15 – Subtract line 13 from line 12. This is the amount of
carry forward remaining from the prior K-53 schedules.
LINE 16 – Enter the maximum credit allowable in any one year
from the original Schedule K-53 for the year shown on line 11.
LINE 17 – Enter the lesser of line 15 or line 16. This is the amount
of carry forward available to this return from each year shown
on line 11.
LINE 18 – Add line 17, columns (A) through (D) (plus additional
columns if applicable) and enter the result. This is the total
amount of carry forward credit available to this tax year.
LINE 19 – Enter total Kansas tax liability for the current tax year
after all previously claimed credits.
PART E – COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR
LINE 20 – Enter the lesser of the sum of lines 9 and 18 or line 19.
Enter this amount on the appropriate line of Form K-40, Form
K-41, or Form K-120.

TAXPAYER ASSISTANCE

LINE 1 – Mark the box that best describes your research and
development expenditures for the current year.

For assistance in completing this schedule contact the Kansas
Department of Revenue:

LINE 2a – Enter the total allowable research and development
expenditures for activities conducted within Kansas for the
first tax year preceding the current taxable year.

Taxpayer Assistance Center
Scott Office Building
120 SE 10th Ave
PO Box 750260
Topeka KS 66699-0260

LINE 2b – Enter the total allowable research and development
expenditures for activities conducted within Kansas for the
second tax year preceding the current taxable year.
LINE 3 – Add lines 1, 2a, and 2b and enter the result on line 3.
LINE 4 – Divide line 3 by three (3). This is the amount of average
expenditures.

Phone: 785-368-8222
Fax: 785-291-3614
Additional copies of this credit schedule and other tax forms
are available from our website at: ksrevenue.gov