Kansas Research and Development Credit

Research and Development Credit
K-53 Kansas Research and Development Credit Rev. 7-24
K-53

KANSAS

K-53
Attach
191224

RESEARCH AND DEVELOPMENT CREDIT

(Rev. 7-24)

For the taxable year beginning _______ ; 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)

Mark this box if credit has
been transferred

Name of Transferee

Transferee Employer ID Number (EIN)

Provide the address below of location in Kansas where Research and Development is being conducted:
(Attach additional pages as needed)
__

Street Address

________________________________________

City

_

County

Description of the Research or Development activity (Attach additional pages as needed) ________________________________________________
	
	
	
	
	
	
	

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

Machinery and Equipment

$ ______________

Payroll

$ ______________

Other (describe)

_

$ ______________

2. Research and development expenditures for the:
a. first preceding taxable year.

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 10% or .10).

6.	
____________________________

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

7.

____________________________

8. Amount of your tax liability for this tax year after all other credits other than this credit.

8.

____________________________

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).

9.

____________________________

10.

____________________________

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

PART B – COMPUTATION OF ALLOWED CREDIT FOR THIS YEAR'S EXPENDITURES

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

K-53
Attach
191224

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. 79-32,182b). 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 10% 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 2023 and all tax years thereafter, new credits are available
to individuals, partnerships, S corporations, Limited Liability Companies,
other pass-through entities and C corporations. In addition, new credits
earned in the tax year 2023 and after may be transferred to any person
and be claimed by the transferee as a credit against the transferee’s
Kansas income tax liability in the tax year the credit was transferred. The
credit claimed by the transferee may be carried forward by the transferee,
however, that carry forward credit shall be subject to limitations, and
requirements in place at the time the credit was earned.
A transferred credit is not refundable. Only the full credit may be
transferred to a transferee and the credit may only be transferred one
time. Form K-260 must be completed and submitted to the Department in
order to document a transfer.
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.
Checkbox: Check this box if the credit is transferred. Provide the name
of the taxpayer that received the credit and that taxpayer's employer ID
number.
Enter the address of the location where the Kansas research and
development is conducted. If there are several locations within the state
list each location on additional pages as necessary.
Describe the research and development activity. Attach additional
pages as needed.
Transferors, If you are a transferor, you must complete Part A. If you
have carry forwards remaining from prior years, you must complete Part
D and Part E.
Transferees, If you are a transferee, you must complete Part B, Part C,
and Part E. If you have carry forwards remaining from prior years, you
must complete Part D.

PART A – COMPUTATION OF MAXIMUM ALLOWABLE CREDIT
FOR THIS YEAR’S EXPENDITURES
LINE 1 –Enter the machinery and equipment, payroll, and other
expenditures for activities conducted within Kansas for the tax year.
Provide a description of the "other" expenditures. Sum the amounts of
expenditures for each category and enter the total amount on line 1.
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.

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.
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 10% (.10). This is the total credit.
LINE 7 – Multiply line 6 by 25% (.25). This is the maximum credit allowed
in any one tax year.
STOP HERE if you have transferred this credit. The K-53 needs to
be completed through Part A and provided to the transferee. The
transferee will complete the remaining selections of the form and
submit with their applicable income tax return.

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. If this credit has been
transferred to you, enter the amount of credit you have received
through the transfer.
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 Schedule K-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

For assistance in completing this schedule contact the Kansas
Department of Revenue:
Taxpayer Assistance Center
Scott Office Building
120 SE 10th Ave
PO Box 750260

Topeka KS 66699-0260

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