State Program
Kansas Research and Development Credit
A recently expanded and transferable credit that extends eligibility to pass-through entities.
Program Overview
Kansas has expanded its research credit to include all eligible taxpayers, including pass-through entities, and has increased the applicable credit rate. The credit is claimed over a multi-year schedule rather than in a single year. Unused credits may be transferred one time to another Kansas taxpayer, subject to applicable requirements, allowing businesses that cannot immediately use the credit to realize its value through a transfer.
Eligibility
- Taxpayers with qualified research and development expenditures incurred for research conducted in Kansas may qualify.
- Qualified research and development expenditures must meet the applicable Kansas requirements.
- The credit is based on qualifying expenditures that exceed the applicable base amount, calculated using the current and two prior tax years as required under Kansas law.
- Pass-through entities may qualify, subject to applicable requirements.
Benefits
- Provides a non-refundable credit against Kansas income tax liability.
- Unused credits may be transferred one time to another Kansas taxpayer, subject to applicable requirements.
- The credit is claimed in equal installments over the applicable multi-year period.
- Transferability may allow eligible businesses without sufficient current Kansas tax liability to realize value from unused credits.
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