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Form K-34 - Kansas Business and Job Development Credit

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Form K-34 - Kansas Business and Job Development Credit

Answer

 The purpose of the business and job development credit is to provide tax incentives throughout the state which encourage businesses to create new jobs through capital investment projects involving the building of new facilities or the expansion or renovation of existing facilities. There are two different acts within the Kansas statutes which provide an income tax credit for those businesses which make an investment and create jobs as a result of that investment. The acts are the Job Expansion and Investment Credit Act of 1976 and the Kansas Enterprise Zone Act.

Effective for all taxable years beginning after Dec. 31, 2010, no business and job development credit computed under the Job Expansion and Investment Act of 1976 or the Kansas Enterprise Zone Act shall be allowed for those taxpayers that have made an investment and placed that investment into service after Dec. 31, 2010 in a facility which is located in a metropolitan county.

Effective for all taxable years beginning after Dec. 31, 2011, no business and job development credit computed under the Job Expansion and Investment Act of 1976 or the Kansas Enterprise Zone Act shall be allowed for those taxpayers that have made an investment and placed that investment into service after Dec. 31, 2011 in a facility which is located in an area other than a metropolitan county.

Remaining credits that have been earned under K.S.A. 79-32,160a may be carried forward to succeeding tax years as long as all requirements are met under K.S.A 79-32,160(a).

Credits that have been earned under K.S.A. 79-32,153 may be re-computed for the remaining applicable number of years as long as all requirements continue to be met under K.S.A.79-32,153.

JOB EXPANSION AND INVESTMENT CREDIT ACT OF 1976
(INCOME TAXPAYER)

Effective for all taxable years beginning after Dec. 31, 1975.

Qualifications

The business and job development credit is allowed as a direct tax credit against the income tax of any Kansas taxpayer if:

There is no minimum amount of investment necessary to qualify for the credit, however, some investment must have been made. The taxpayer must qualify for the credit during the first taxable year that operations occur at the qualified business facility investment.

Credit Amount

For an investment that began operations after Dec. 31, 1992, the credit amounts are as follows:
Employee - $100 for each qualified employee
Investment - $100 for each $100,000 of qualified investment

For an investment that began operations prior to Dec. 31, 1992, the credit amounts are as follows:

Investment is located in an enterprise zone:
Employee
Kansas resident - $350 for each qualified employee
$500 for each qualified targeted employee as defined in the Internal Revenue Code

Kansas nonresident - $100 for each qualified employee

Investment
- $350 for each $100,000 of qualified investment

Investment is not located in an enterprise zone:
Employee - $100 for each qualified employee
Investment - $100 for each $100,000 of qualified investment

Limitation of Credit

The credit is limited to 50 percent of the tax on the qualified business facility income for the tax year, but in no case can the credit from all qualified investment and employees be more than 50 percent of the Kansas income tax in any one tax year.

The credit is recomputed each year for a 10 year period and no carryover of unused credit is allowed.

 

More information about this credit is available on the Kansas website.  http://ksrevenue.org

 


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Views: 1525 Created on: Jun 15, 2013
Date updated: Jan 03, 2019
Posted in: States, Kansas

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