Kansas Declared Disaster Capital Investment Credit

Declared Disaster Capital Investment Credit
K-87 Declared Disaster Capital Investment Credit Rev. 8-19
193218

K-87

KANSAS

DECLARED DISASTER CAPITAL INVESTMENT CREDIT

(Rev. 8-19)

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)

Indicate which city (or within one mile thereof) the capital investment in a business was made:

 Chanute
 Independence

 Coffeyville
 Iola

 Erie
 Neodesha

 Fredonia
 Osawatomie

 Greensburg

__D
__ - __ __ - __ __ __ __ __ - __ __ __ __ __
Enter your pre-approved Certificate Number: D
PART A – COMPUTATION OF CREDIT (see instructions)
1.

Amount of capital investment in a business which is located in the city of Chanute, Coffeyville, Erie,
Fredonia, Greensburg, Independence, Iola, Neodesha or Osawatomie, Kansas or within one mile
of the city limits of these cities.

1.

________________

(Do not include investment for which you received, or will receive, assistance through the Southeast Kansas
Business Restoration Assistance Program or the Kiowa County Business Restoration Assistance Program.)

2.

Authorized credit percentage.

2.

10%
________________

3.

Credit. Multiply line 1 by line 2. Do not enter more than $100,000.

3.

________________

4.

Amount of pre-approved credit. (This is the amount approved by KDOR - line 4 minus line 7 from
previous year’s credit schedule with the same pre-approved Certificate Number as entered above).

4.

________________

5.

Available credit. Enter the lesser of lines 3 or 4.

5.

________________

6.

Your proportionate share percentage (see instructions).

6.

________________

7.

Your share of the credit for the capital investments made this year. Multiply line 5 by line 6. If you
are electing to use the refund option, skip Part B (lines 8 thru 11) and proceed to Part C.

7.

________________

Prior year’s carry forward. Enter the amount of available carry forward from the prior year’s
Schedule K-87. (Make no entry for tax year 2008.)

8.

________________

Total credit available this tax year. Add lines 7 and 8.

9.

________________

PART B – COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR (see instructions)
8.
9.
10.

Enter your total Kansas tax liability for this tax year after all credits other than this credit.

10.

________________

11.

Amount of credit this tax year. Enter the lesser of line 9 or line 10 here and on the appropriate
nonrefundable credit line of Form K-40, K-41, K-120 or K-130. Skip Part C (lines 12 through 14)
and proceed to line 15.

11.

________________

PART C – COMPUTATION FOR REFUNDABLE PORTION OF CREDIT (see instructions)
12.

Your share of the credit for the capital investments (Enter the amount from line 9 above).

12.

________________

13.

Authorized refundable credit percentage.

13.

50%
________________

14.

Amount of credit to be refunded. Multiply line 12 by line 13 and enter the result here and on the
appropriate refundable tax credit line of Form K-40, K-41, K-120, or K-130. K-40 or K-41 filers:
Apply this credit to the tax liability first. Enter the excess credit on the refundable line of the return.

14.

________________

15.

________________

PART D – COMPUTATION OF CREDIT CARRY FORWARD (see instructions)
15.

Amount of excess credit available to carry forward to next year’s return. Subtract line 11 from line 9
and enter the result here and on line 8 of next year’s Schedule K-87.

INSTRUCTIONS FOR SCHEDULE K-87

GENERAL INFORMATION

LINE 3 – Multiply line 1 by line 2, and enter the result here. Do not
enter more than $100,000.

K.S.A. 79-32,262 provides an income, privilege or premiums tax
credit for tax years 2008, 2009 and 2010 for any taxpayer who
makes a capital investment in a business that is located in the city
limits, or within one mile of, the following Kansas cities: Chanute,
Coffeyville, Erie, Fredonia, Greensburg, Independence, Iola,
Neodesha or Osawatomie. The investment must be made within
three years of the date of the disaster’s occurrence which is the
subject of major disaster declaration DR 1699 or DR 1711. The
credit shall not exceed 10% of the investment. The total amount of
credit allowed for any one taxpayer shall not exceed $100,000. In
no event shall the total amount of credits or refunds exceed
$5,000,000 for any one fiscal year.

LINE 4 – Enter the amount of credit approved by KDOR (Kansas
Department of Revenue). This is line 4 minus line 7 from the
previous year’s K-87 credit schedule. The pre-approved
amount must be from the same Certificate Number as entered
in the header.

The amount of credit shall be reduced by an amount equal to
any assistance payment received by the taxpayer from the
Southeast Kansas Business Restoration Assistance Program, or
from the Kiowa County Business Assistance Program. No taxpayer
shall claim more than one credit for the same investment, except
that nothing shall prevent a taxpayer from making a claim for and
being allowed credit in a subsequent tax year when such taxpayer
was not allowed the credit in a previous tax year. If the amount of
this tax credit exceeds the income, privilege or premium tax liability
for the taxpayer for any taxable year in which the qualified
investment is made, the excess credit may be carried over for
deduction from such taxpayer’s tax liability in the next succeeding
year or years until the total amount of the credit has been deducted
from the tax liability, except that no such credit shall be carried over
for deduction after the 10th taxable year succeeding the taxable
year in which the qualified investment was made.

If you are electing to use the refund option
skip lines 8 through 11 and proceed to Part C.

A taxpayer may receive a refund in lieu of the above described
nonrefundable credit. The refund shall be 50% of the computed
credit. The amount of refund shall also be reduced by an amount
equal to any assistance payments received by the taxpayer. Should
the taxpayer elect to receive the cash in lieu of the credit, the
remaining portion of the tax credit shall be lost. Any refund shall be
allowed against the tax liability in the tax year the qualified
investment is placed into service.
IMPORTANT: Before you can claim this credit on Form
K-87, the amount of credit MUST BE APPROVED by
KDOR (Kansas Department of Revenue). An on-line
application can be found at: ksrevenue.gov

SPECIFIC LINE INSTRUCTIONS
Enter all requested information at the top of this schedule.
PART A - COMPUTATION OF CREDIT
LINE 1 – Amount of capital investment in a business which is
located in the city of Chanute, Coffeyville, Erie, Fredonia,
Greensburg, Independence, Iola, Neodesha or Osawatomie,
Kansas or within one mile of the city limits of these cities.
Do not include investment for which you have received, or
will receive, assistance through the Southeast Kansas
Business Restoration Assistance Program or from the Kiowa
County Business Restoration Assistance Program.
LINE 2 – The authorized credit percentage is 10%.

LINE 5 – Available credit. Enter the lesser of lines 3 or 4 here.
LINE 6 – Partners, shareholders or members: Enter the percentage
that represents your proportionate share in the partnership,
S corporation, LLC or LLP. All other taxpayers: Enter 100%.
LINE 7 – Your share of the credits. Multiply line 5 by line 6, and
enter the result here.

PART B - COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR
LINE 8 – Prior year’s carry forward. Enter the amount of available
carry forward from the prior year’s Schedule K-87. (Make no entry
for tax year 2008.)
LINE 9 – Total credit available this tax year. Add lines 7 and 8 and
enter the result.
LINE 10 – Enter your total Kansas tax liability for this tax year after
all credits other than this credit.
LINE 11 – Amount of credit this tax year. Enter the lesser of lines
9 or 10. Enter this amount on the appropriate nonrefundable
credit line of Form K-40, K-41, K-120 or K-130. Skip lines 12
through 14 and proceed to line 15.
PART C - COMPUTATION FOR REFUNDABLE PORTION OF CREDIT
LINE 12 – Your share of the credit for the capital investments.
Enter the amount from line 9 above.
LINE 13 – The authorized refundable credit percentage is 50%.
LINE 14 – Amount of credit to be refunded. Multiply line 12 by
line 13 and enter the result here, and on the appropriate
refundable credit line of Form K-40, K-41, K-120, or K-130.
PART D - COMPUTATION OF CREDIT CARRY FORWARD
LINE 15 – Amount of excess credit available to carry forward to
next year’s return. Subtract line 11 from line 9 and enter the
result here and on line 8 of next year’s Schedule K-87.
IMPORTANT: Do not send enclosures with this schedule,
however keep copies of important documentation with
your records. KDOR reserves the right to request
additional information as necessary.

TAXPAYER ASSISTANCE
For assistance in completing this schedule contact KDOR:

Taxpayer Assistance Center
120 SE 10th Ave
PO Box 750260
Topeka KS 66699-0260
Phone: 785-368-8222