A credit may be deducted from a taxpayer’s income or privilege tax liability if the taxpayer invests in stock issued by Kansas Venture Capital, Inc. (K.S.A. 74-8205). The taxpayer may also modify from federal taxable income any dividend income on stock issued by Kansas Venture Capital, Inc. The amount of credit is 25% of the total cash investment in such stock. A credit amount that exceeds the tax liability in any one taxable year may be carried forward until used.
For tax year 2013, and all tax years thereafter, new credits shall be available to only: 1) C corporations that are subject to the Kansas corporate income tax; 2) taxpayers subject to the privilege tax as measured by net income of financial institutions imposed pursuant to K.S.A., Chapter 79, article 11; and, 3) any insurance company subject to the premium tax and privilege fees imposed pursuant to K.S.A. 40-252. New credits are not available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.
Carry Forward of Unused Credits: If this credit was earned prior to tax year 2013 and a carry forward credit remains available to a taxpayer, that taxpayer may continue to claim that credit. However, that carry forward credit shall be subject to limitations and requirements in place at the time the credit was earned.