State R&D Tax Credits

Kansas

Credit Name: Schedule K-204 and K-53: Kansas Research and Development Credit

Expiration Date: None; applies to all years after 1987

Does it apply to C corps and pass-through entities?: Effective January 1, 2023, applies to all entity types.

Credit Carry forward: The credit allowed in any one tax year is limited to 25% of the credit plus any carry forward. Any remaining unused credit may be carried forward in 25% increments until the total amount of credit is used.

Description: Effective for tax years beginning on or after January 1, 2023, the credit is 10% of the difference between the actual qualified research and development expenses for the year and the average of the actual expenditures made during the year and the two previous tax years.

Other

• For tax years 2023 and forward, an application must be submitted (Schedule K-204) prior to filing the tax return,
• Effective for tax years beginning on or after January 1, 2023, the credit can be transferred by a taxpayer without a current tax liability to any person and be claimed by the transferee in the year tax it was transferred. The transferred credit is not refundable.