Kansas Owners Promoting Employment Across Kansas PEAK Credit Instructions Only

Owners Promoting Employment Across Kansas PEAK Credit Instructions Only
K-88 Kansas Owners Promoting Employment Across Kansas (PEAK) Credit Rev. 7-19INSTRUCTIONS FOR OWNERS PROMOTING EMPLOYMENT ACROSS KANSAS (PEAK) CREDIT SCH K-88

This credit available only through electronic filing.
For taxable years commencing after December 31, 2010, K.S.A.
79-32,266 provides a credit against the tax liability of a resident
individual taxpayer in an amount equal to 95% of their income tax
liability for Kansas source income received from a qualified company
that has business income attributable to business activities conducted
at the business facility, office, department or other operation relocated
to Kansas. The taxpayer must own the qualified company and
materially participate in such business activities conducted at the
relocated business facility, office, department or other operation of the
qualified company which qualified for benefits under the provisions
of subsection (a)(1) of K.S.A. 74-50,212, and amendments thereto.
For taxable years beginning after December 31, 2012 and ending
before January 1, 2017, this credit shall not be available to any
taxpayer that makes a modification to income under K.S.A. 7932,117(b)(xix) or K.S.A. 79-32,117(c)(xx).
PART A – PEAK AND MATERIAL PARTICIPATION TEST
LINE 1: Your qualified company must have a signed PEAK incentive
agreement with the Kansas Department of Commerce (KDOC)
in order for you, the owner, to claim this credit.
LINE 2: Answer the seven questions in line 2 to determine if you,
the owner or part owner of the qualified business, materially
participated in the business. You must answer yes to at least
one of the seven questions to qualify for this credit.
PART B – GENERAL INFORMATION
LINE 3: Enter the name and employer identification number of the
business that meets all the PEAK qualifications and has signed
an incentive agreement with KDOC.
LINE 4: Enter the address for the qualified company.
LINE 5: Enter the date the qualified company began operations at
the address listed on line 4.
LINE 6: The business must have relocated a business facility, office,
department or other operation from a location outside of Kansas
to a location in Kansas. If the business was not located outside
of Kansas you do not qualify for the Owners PEAK tax credit.
PART C – COMPUTATION OF CREDIT
LINE 7: Enter the total of all business income apportioned to
Kansas. If all of your business income is from Kansas only, enter
that amount on line 7 as Kansas business income and go on
to line 8. If your business income is from both in Kansas and
outside of Kansas you will need to complete a Kansas business
income apportionment schedule to calculate the total of all your
business income that is apportioned to Kansas (this may have
already been completed at the business level). You may use
the Kansas Corporation Apportionment Schedule, K-120AS,
for the calculation. Visit our website at ksrevenue.gov for
more information on apportioning Kansas business
income. This must be done before apportioning the PEAK
qualified business income derived for the qualified business
relocated to Kansas.
LINE 8: To determine your PEAK qualified business income
apportionment factor you will need to complete the Qualified
Company Apportionment Schedule, PART D. See instructions
for PART D.
LINE 9: Multiply line 7 by line 8 and enter result. This is the business
income attributable to business activities conducted at the

business facility, office, department or other operation relocated
to Kansas.
LINE 10: Enter the percentage that represents your proportionate
share in the partnership, S corporation, LLC or LLP. All other
taxpayers: Enter 100%.
LINE 11: Multiply line 9 by line 10. This will be the owner’s share
of income.
LINE 12: Use amount on line 11 and the tax computation schedule
provided to calculate the Kansas tax liability attributed to the
income of the qualified business. Enter result on line 12.
LINE 13: Multiply line 12 by 95%. This is your share of the Owners
PEAK credit.
LINE 14: Your Kansas tax liability after any other states’ tax
credit(s). Enter the amount of your Kansas tax liability for this
tax year after all credits other than this credit.
LINE 15: Total credit. Enter amount from line 13 or line 14, whichever
is less. Also enter this amount on line 15 of Form K-40.
PART D – QUALIFIED COMPANY APPORTIONMENT SCHEDULE (QCAS)
To determine the business income attributable to the business
activity conducted at the qualified business relocated to Kansas, the
business income determined in PART C, line 7 must be multiplied
by a three-factor formula comprised of the PEAK location Kansas
property, payroll and sales factors divided by total Kansas property,
payroll and sales factors.
The property factor is a fraction, the numerator of which is
the average value of the company’s real and tangible personal
property owned or rented and used during the tax period at such
relocated facility, office, department or other relocated operation
in Kansas, and the denominator of which is the average value of
the company’s real and tangible personal property owned or rented
and used within this state during the tax period. (Rented property
is equal to the sum of; total rented property at the beginning of the
year plus total rented property at the end of the year divided by 2.
Multiply the result of this by 8.)
The payroll factor is a fraction, the numerator of which is the total
amount paid during the tax period by the company for compensation
at such relocated facility, office, department or other relocated
operation in Kansas, and the denominator of which is the total
compensation paid by the company in this state during the tax period.
The sales factor is a fraction, the numerator of which is the total
sales of the relocated facility, office, department or other relocated
operation in this state during the tax period, and the denominator
of which is the total sales of the company in this state during the
tax period.

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

Extracted from PDF file 2023-kansas-form-k-88.pdf, last modified October 2019

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More about the Kansas Form K-88 Corporate Income Tax Tax Credit TY 2023

We last updated the Owners Promoting Employment Across Kansas PEAK Credit Instructions Only in February 2024, so this is the latest version of Form K-88, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form K-88 directly from TaxFormFinder. You can print other Kansas tax forms here.

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Other Kansas Corporate Income Tax Forms:

TaxFormFinder has an additional 73 Kansas income tax forms that you may need, plus all federal income tax forms.

Form Code	Form Name
Form K-4	Employees Withholding Allowance Certificate
Form K-120ES	Corporate Estimated Tax Payment Vouchers Estimated
Form K-41	Fiduciary Income Tax Tax Return
Form IA-81	Claim to Support Withholding Tax Credit Tax Credit
Form 1041V	Fiduciary Income Tax Voucher Voucher

Download all KS tax forms View all 74 Kansas Income Tax Forms

Form Sources:

Kansas usually releases forms for the current tax year between January and April. We last updated Kansas Form K-88 from the Department of Revenue in February 2024.

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Form K-88 is a Kansas Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Kansas Form K-88

We have a total of ten past-year versions of Form K-88 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Form K-88