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Kansas Free Printable Business and Job Development Credit K-34 (Rev. 8-11) for 2020 Kansas Business and Job Development Credit

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Business and Job Development Credit
Business and Job Development Credit K-34 (Rev. 8-11)

K-34 190301 KANSAS BUSINESS AND JOB DEVELOPMENT CREDIT (Rev. 8-19) For the taxable year beginning, _________________ , 20____ ; ending _________________ , 20____ . Name of taxpayer (as shown on return) Social Security Number or Employer ID Number (EIN) If partner, shareholder or member, enter name of partnership, S corporation, LLC or LLP Employer ID Number (EIN) PART A – DESCRIPTION OF QUALIFIED BUSINESS FACILITY 1. Name of legal entity making investment: ___________________________________ EIN: ____________________________ 2. Location of qualified business facility: a. Street Address ________________________________________________________________________________________ b. City __________________________________ County No. _______________ County Name ______________________ c. NAICS __________________________________ 3. Date operation began at this qualified business facility (mm/dd/yyyy): ___ ___ ___ ___ ___ ___ ___ ___ 4. Indicate the type of business activity conducted at this facility (check appropriate box): ˆ ˆ ˆ ˆ Retail or Service Manufacturer Contractor - Retailer Contractor - Nonmanufacturer ˆ ˆ ˆ ˆ Nonmanufacturer - Regular Nonmanufacturer - Business Headquarters Nonmanufacturer - Ancillary Support Nonmanufacturer - NAICS 45411_____, 511210_____, 711212_____ (auto racetracks only) 5. Please check the box that best describes the type of qualified investment made at this facility: ˆ ˆ ˆ ˆ ˆ ˆ New facility Investment or expansion at an existing facility Move from old Kansas location to new Kansas location Move from out of state to new location in Kansas Other: ______________________________________________________________________________________________ No new investment (for recomputing credits) 6. Date of investment made during the tax year for the qualified business facility (mm/dd/yyyy): ___ ___ ___ ___ ___ ___ ___ ___ 7. Attach description of the investment made (see instructions). PART B – COMPUTATION OF CREDIT (a) Retail or Service 8a. Number of qualified business facility employees .......................... 8b. Total Kansas payroll for employees identified on line 8a ............... 9. Qualified business facility employee credit ................................... 10. Qualified business facility investment ........................................... 11. Qualified business facility credit factor ......................................... 12. Qualified business facility investment credit ................................. 13. Total credit or prior year’s carry forward (must complete worksheet ) ....... 14. Amount of credit used ................................................................... 15. Carry forward amount (must complete worksheet) .................................... Retail or Service ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ 16. Qualified business facility income (attach schedule) .................... ______________________________ 17. Tax on qualified business facility income (must complete worksheet) ........ 18. Business and job credit limitation (50%) ........................................ 19. Business and job development credit ............................................ Shareholder or Partner (attach schedules) 20. Ownership percentage ................................................................. 21. Shareholder or partner amount of credit ....................................... 22. Shareholder or partner Kansas tax liability (must complete worksheet) ..... 23. Amount of credit used ................................................................... 24. Carry forward amount (must complete worksheet) .................................... Payroll Information A. Total employment in the state of Kansas ....................................... B. Total payroll in the state of Kansas ............................................... ______________________________ ______________________________ ______________________________ (b) Manufacture / Nonmanufacturer _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ ˆ I would like to defer this credit to __ __ __ __ . (not to exceed 3 years) ______________________________ ______________________________ ______________________________ ______________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ ______________________________ ______________________________ _____________________________ _____________________________ 190302 Name ___________________________ EIN _______________ Location _________________________________ PART C – DETERMINING QUALIFIED EMPLOYEES AND CREDIT (see instructions for available credit amounts) (A) Month (B) (C) (D) (E) (F) Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Number of Base Employees Number of Employees Number of Employees Number of Employees Number of Employees 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. Total No. of Employees 38. Average Employees 39. Base Employees 40. Qualified Employees 41. Decrease in Employees 42. Adjusted Employees 43. TOTAL Employee Credit PART D – DETERMINING QUALIFIED INVESTMENT AND CREDIT (see instructions for available credit amounts) (A) Month (B) (C) (D) (E) (F) Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Monthly Base Investment Monthly Investment Monthly Investment Monthly Investment Monthly Investment 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. Total Monthly Investment 57. Average Investment 58. Capitalized Rents 59. Total Investment 60. Base Investment 61. Increase in investment 62. Nonrelated Investment 63. Avg. Qualified Investment 64. Decrease in Investment 65. Adjusted Investment 66. Investment Credit Factor 67. TOTAL Investment Credit 68. TOTAL Credit 69. Credit Used 70. Carry Forward 2 190303 Name ___________________________ EIN _______________ Location _________________________________ PART C – (continued) (G) (H) (I) (J) (K) (L) Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Number of Employees Number of Employees Number of Employees Number of Employees Number of Employees Number of Employees 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. PART D – (continued) (G) Year End Date: __ __ __ __ Monthly Investment (H) Year End Date: __ __ __ __ Monthly Investment (I) (J) (K) Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Year End Date: __ __ __ __ Monthly Investment Monthly Investment Monthly Investment Monthly Investment 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 3 (L) K-120 FILERS: EXAMPLE FOR LINE 16 and 17 OF SCHEDULE K-34 This example was created for businesses that are unable to determine their exact property and payroll factors. You will need to complete a property and payroll factor for each credit. If inventory is included in the numerator, then it must be included in the denominator. PROPERTY FACTOR: Investment in New Business Facility Average Inventory & Allocation Ratio $ 115,737.00 Line 65 – Part D (original year) 0 .00 $ Total Qualifying Kansas Property 115,737.00 E L P M A X E $ 9,417,250.00 4,330,710.00 $ 13,747,960.00 50 % $ 6,873,980.00 4,842,928.00 Kansas Beginning Property (Current Year) Kansas Ending Property (Current Year) Total Property Multiply by 50% Average Property Total Rents in Kansas X 8 (Current Year) $11,716,908.00 Total Average Kansas Property 0.9878% Property Factor (Total qualifying Kansas property divided by total average Kansas property) PAYROLL FACTOR: $ 5,461,204.00 188 $ 29,049.00 Total Kansas wages (Current Year) Divide by Kansas Employees (Current Year) Average Kansas Salary (Current Year) Multiply by Number of Qualified Business Facility Employees 11 Line 40 – Part C (original year) $ 319,539.00 $ 5,461,204.00 Total Facility Wages Total Kansas Wages (Current Year) 5.8511% Payroll Factor Property Factor Payroll Factor Total Percent Divide by 2 Average Percent 0.9878 5.8500 6.8389 2 3.4195 % % % % Kansas Taxable Income (Current Year) $ 271,184,00 K-120: Line 20, Kansas Taxable Income K-121: Line 19, Combined Report Income $ Allocated Qualified Business Income Tax on Total Kansas Taxable Income (Current Year) $ 9,273.14 K-34: Line 16 18,257.00 K-120: Line 23, Total Tax K-121: Line 22, Total Tax Multiply by Average Percent 3.4195 % Tax on Qualified Business Income $ 4 625.00 K-34: Line 17 K120S FILERS: EXAMPLE FOR LINE 16 OF THE SCHEDULE K-34 (Individuals see next page) This example was created for business’ that are unable to determine their exact property and payroll factors. You will need to complete a property and payroll factor for each credit. If inventory is included in the numerator then it must be included in denominator. PROPERTY FACTOR: Investment in New Business Facility Average Inventory & Allocation Ratio $ 406,022.00 Line 63 – Part D (original year) 0 .00 Total Qualifying Kansas Property $ Kansas Beginning Property (Current Year) Kansas Ending Property (Current Year) Total Property Multiply by 50% Average Property Total Rents in Kansas X 8 (Current Year) 406,022.00 $ 202,067,263.00 271,976,820.00 $ 474,044,083.00 50 % $ 237,022,042.00 3,438,576.00 E L P M A X E Total Average Kansas Property $ 240,460,618.00 Property Factor 0.1689% (Total qualifying Kansas property divided by total average Kansas property) PAYROLL FACTOR: Total Kansas wages (Current Year) Divide by Kansas Employees (Current Year) Average Kansas Salary (Current Year) Multiply by Number of Qualified Business Facility Employees $ $ 4,668,101.00 673 6,936.00 5 Total Facility Wages Total Kansas Wages (Current Year) Line 40 – Part C (original year) $ $ Payroll Factor Property Factor Payroll Factor Total Percent Divide by 2 Average Percent 34,680.00 4,668,101.00 0.7429% 0.1689 % 0.7429 % 0.9118 % 22 0.4559 % Kansas Total Income (Current Year) $ Allocated Qualified Business Income 10,130,145,00 K-120S: Line 18 $ 46,183.00 K-34: Line 16 Sole proprietorship, Partnership or S Corporation stop here. Please provide a copy of the property and payroll factor calculation sheet to the sole proprietor, partners or shareholders. 5 K-40 & K-41 FILERS: EXAMPLE FOR LINES 16 THROUGH 21 OF SCHEDULE K-34 To determine the tax amount on the individual’s QBF income, the sole proprietor, partner or shareholder must multiply the total QBF income by the percentage owned or per share basis to arrive at the individual’s share of QBF income. The individuals share of QBF income must then be multiplied by an effective tax rate. The effective tax rate is the individual’s total Kansas tax liability divided by that individual’s total Kansas taxable income. Sole proprietor, partner or shareholder percentage (owned or per share basis): 35% Allocated qualified business income: Times Percentage owned: $ 46,183.00 K-34: line 16 35 % Your share of qualified business facility income: $ 16,164.05 E L P M A X E The following two lines calculate your tax rate for the qualifying business income: Your total Kansas tax liability: Divided by your taxable income: Effective tax rate: $ 2, 277.00 K-40: line 8 or 12 (whichever is applicable) $ 49,647.00 K-40: line 7 4.5864 % Your share of qualified business facility income: Multiply by effective tax rate: Tax on qualified facility income: $ 16,164.05 4.5864 % $ 741.00 50% of tax: $ Total qualified employees and investment credit: Times your percentage owned: Your share of credit: $ $ 370.00 7,000.00 K-34: line 13 35 % 2,450.00 Credit allowable: (50% of tax or your share of credit, whichever is less) 6 $ 370.00 K-34: line 21 7 Credit denied. No new credits for qualified business located in Metropolitan counties after 12-31-2010. Yes Is the investment located in a metropolitan county? Douglas, Johnson, Leavenworth, Sedgwick, Shawnee or Wyandotte. Yes Is the increase in employees 2 or more? Yes Is the taxpayer a manufacturing business? No Yes Credit: $2,500 for each qualified employee; $1,000 for each $100,000 of qualified investment. Yes No Yes Is the increase 20 or more full time positions? No Yes Yes Credit: $100 for each qualified employee; $100 for each $100,000 of qualified investment. Yes Is the increase in employees 2 or more? No Is the taxpayer classified under NAICS 45411, 511210 or 711212? No Is this the corporate or business headquarters or an ancillary support facility of a retail business? Yes Does the taxpayer qualify as a retailer? No No Credit denied. Credit denied. Manufacturing: All commercial enterprises identified under the manufacturing NAICS Codes. Nonmanufacturing: Any commercial enterprise other than a manufacturing business or a retail business. (Includes corporate or business headquarters of a “retail business” for years commencing after 12-31-93.) Manufacturing and nonmanufacturing: Credit is computed once and the remainder of the credit is carried over until utilized for as long as the taxpayer maintains the minimum number of qualified employees of that type of business. Retail business: Any commercial enterprise primarily engaged in the sale at retail of goods or services, or both. Credit must be recomputed each year for a ten year period. Corporate or business headquarters: A qualified investment where principal officers of the corporation or business are housed and from which direction, management or administrative support for transactions is provided for a corporation, business or a division of a business or regional division of a business. Ancillary support: A facility which is operated by a business and whose function is to provide services in support of the business, but is not directly engaged in the business’ primary function. NAICS 45411: Catalog and Mail-Order Houses NAICS 511210.: Prepackaged Software NAICS 711212: Auto Racetrack Business is located in “any other” region. Credit: $1,500 for each qualified employee; $1,000 for each $100,000 of qualified investment. Credit denied. No No DEFINITIONS Is the increase in employees 5 or more? Yes Is the taxpayer a nonmanufacturing business? Is the investment located in a nonmetropolitan region? (Declared by Department of Commerce) Contact that Department to determine location. Credit denied. No No For Facilities Which Began Operations On or After January 1, 1993 For a quick reference as to whether you qualify for the credit please use the flowchart below. Income Tax Quick Reference Flowchart 8 * ** No No No Credit: $2,500 for each qualified employee; $1,000 for each $100,000 of qualified investment.* Yes Is the investment located in a nonmetropolitan region (Declared by Department of Commerce)? Contact that Department to determine location. Credit denied. No Business is located in “any other” region. Credit: $1,500 for each qualified employee; $1,000 for each $100,000 of qualified investment.* Credit: $100 for each qualified employee; $100 for each $100,000 of qualified investment.** Credit is computed once and the remainder of the credit is carried over until utilized as long as the taxpayer maintains the minimum number of qualified employees. Credit must be recomputed each year for a ten year period. Credit denied. No new credits for qualified business located in Metropolitan counties after 12-31-2010. Yes Is the investment located in a metropolitan county? Douglas, Johnson, Leavenworth, Sedgwick, Shawnee, or Wyandotte. Yes Was the qualifying investment the principal place from which the trade or business of the taxpayer is directed or managed and did the facility facilitate the creation of at least 20 new full-time positions? Yes Is the increase in employees 2 or more? For a quick reference as to whether you qualify for the credit please use the flowchart below. Privilege Tax (Banks and Savings & Loans) Quick Reference Flowchart INSTRUCTIONS FOR SCHEDULE K-34 LINE 3: Enter the date the QBF originally commenced operations at this location, if this is a new location enter the date used on line 6. GENERAL INFORMATION K.S.A. 79-32,160(f) requires that taxpayers claiming the business and job development credit provide information aimed at helping the legislature assess the economic impact of this credit. This information is captured on line 8b and lines A & B under Payroll Information – these lines are not to be used to calculate the credit. LINE 4: Mark the box which best describes the business activity performed at the QBF. Retail or Service: • any commercial enterprise primarily engaged in the sale at retail of goods or services taxable under the Kansas retailers’ sales tax act; • any service provider set forth in K.S.A. 17-2707 (doctor, lawyer, accountant, engineer, etc. - refer to listing in the Q & As, available on our website at ksrevenue.org) and amendments thereto; • any bank, savings and loan or other lending institution; • any commercial enterprise whose primary business activity includes the sale of insurance; and • any commercial enterprise deriving its revenue from noncommercial customers in exchange for personal services such as, but not limited to, barber shops, beauty shops, photographic studios and funeral services. Manufacturer: All commercial enterprises identified under the manufacturing standard industrial classification codes 20 through 39 or appropriate manufacturer NAICS code. See pages 21 through 25. Contractor - Retailer: Any contractor other than a contractor-nonmanufacturer. Contractor - Nonmanufacturer: A contractor that primarily (more than 50%) engages in the following services shall be considered as a contractornonmanufacturer: • the service of installing or applying tangible personal property in connection with the original construction of a building or facility; • the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence; or • the construction, reconstruction, restoration, replacement or repair of a bridge or highway. Original construction shall mean the first or initial construction of a new building or facility. The term “original construction” shall include the addition of an entire room or floor to any existing building or facility, the completion of any unfinished portion of any existing building or facility and the restoration, reconstruction or replacement of a building or facility damaged or destroyed by fire, flood, tornado, lightning, explosion or earthquake, but such term, except with regard to a residence, shall not include replacement, remodeling, restoration, renovation or reconstruction under any other circumstances. The Business and Job Development Credit (K-34) Defined. This credit is a non-refundable tax credit applied against income tax or privilege tax. It is allowable to any Kansas taxpayer who shall invest in a qualified business facility (QBF) and who shall hire a certain number of qualified business facility employees (QBFE) as a direct result of that QBF investment. There is no minimum amount of investment necessary to qualify; however, some investment must have been made. Schedule K-34 tracks employees and investments for the life of each credit. Schedule K-34, Part B should be completed and submitted for every credit claimed; Parts C and D of the K-34 should be filled out once per facility and added to as needed for the life of the credit. Effective with tax year 2011, this credit is no longer available in metro counties. Beginning in tax year 2012, it will not be available in metro and non-metro counties. When to File. Schedule K-34 should be filed with the tax return in the tax year the investment became available. Taxpayers electing to defer the credit must complete and enclose their K-34 with the tax return for which qualified investment became available for use. If establishing a credit for the first time, the K-34 should be filed with the original or amended return for the year qualified. If an entity is claiming both a retail or service credit and a manufacturer or nonmanufacturer credit, complete a separate K-34 for each type of business activity credit. SPECIFIC LINE INSTRUCTIONS Complete the name and EIN information required at the top of Schedule K-34. If the taxpayer is a shareholder, partner or member, enter the name of the S Corporation, Partnership, LLC or LLP and the EIN of that entity on the second line. PART A – DESCRIPTION OF QUALIFIED BUSINESS FACILITY LINE 1: Enter the name and EIN of the legal entity making the investment at the QBF. LINE 2: Enter the location information for the QBF. a. Street address or legal description of the qualified business facility (cannot be a post office box). b. City, county number (page 31) and county name where the QBF is located. This information will determine whether the credit is located in a metropolitan county, nonmetropolitan region or other region. (Note: Tax year 2010 is the last year this credit is available for metropolitan counties) c. North American Industry Classification System (NAICS) code for the type of activity conducted at the QBF. Nonmanufacturer - Regular: Any commercial enterprise other than a manufacturing business or retail business. Nonmanufacturer - Business Headquarters: A qualified facility where principal officers of the business are housed and from which direction, management or administrative support for transactions is provided for a business or division of a business or a regional division of a business. 9 Nonmanufacturer - Ancillary Support: A facility which is operated by a business and whose function is to provide services in support of the business but is not directly engaged in the business’ primary function. To be considered ancillary support a declaration must be made by the Department of Commerce. Nonmanufacturer - NAICS codes: 45411 catalog and mail-order houses; 511210 pre-packaged software; or 711212 auto racetrack. LINE 10 (column b): If this is a new credit, enter the QBF investment from the appropriate column in Part D, line 63. If this is a carry forward leave blank. LINE 11 (column a): If this is a new credit, enter credit factor from the appropriate column in Part D, line 66. For each of the nine succeeding tax years, enter credit factor from the appropriate column in Part D, line 66. LINE 11 (column b): If this is a new credit, enter credit factor from the appropriate column in Part D, line 66. If this is a carry forward leave blank. LINE 5: Mark the box that best describes the type of qualified investment made at this facility. New Facility: A new building at a new location. Investment or expansion at an existing facility: A building addition or a new investment such as machinery and equipment at an existing location. Move from old Kansas location to new Kansas location: A business whose operation relocates from one location to another within Kansas. Move from out of state to a new location in Kansas: An operation that relocates their physical business from another state to within Kansas. Other: Describe the type of qualified investment that does not meet any of the above. No new investment: There is no new investment at the QBF during this tax year. Schedule K-34, Part C and D are being completed to recompute an existing Retail or Service credit, or to claim a manufacturer or nonmanufacturer carry forward credit. LINE 12 (column a): If this is a new credit, enter investment credit amount from the appropriate column in Part D, line 67. For each of the nine succeeding tax years, enter investment credit amount from the appropriate column in Part D, line 67. LINE 12 (column b): If this is a new credit, enter the investment credit amount from the appropriate column in Part D, line 67. If this is a carry forward leave blank. LINE 13 (columns a or column b): Add lines 9 and 12. This should equal Part D, line 68 in the appropriate column. LINE 14 (column b): Corporate or Privilege Taxpayers: Enter the amount from line 13 or Kansas tax liability (less any other non-refundable credits), whichever is less. Also, enter this amount on the appropriate line of Form K-120 or Form K-130. Individual Taxpayers: Skip this line. For taxpayers claiming carry forward only, enter the amount of the available carry forward from line 15 of the prior tax year’s Schedule K-34. LINE 6: Enter the date the investment for this credit became operational or available for use by the taxpayer. LINE 7: Attach a description of the investment made at the QBF during the tax year and how it directly relates to the hiring of the requisite number of additional employees. LINE 15 (column b): Corporate or Privilege Taxpayers: Subtract line 14 from line 13. Enter on line 70, Part D for the appropriate tax year. Amount cannot be less than zero. Individual Taxpayers: Skip this line. PART B - COMPUTATION OF CREDIT FOR THIS K-34 Complete Part C and D worksheet prior to filling in Part B. When computing Part B, use the column that coincides with the selection made on line 4, Part A. LINE 8a (column a): If this is a new credit, enter of QBFE from the appropriate column in Part C, For each of the nine succeeding tax years, enter of QBFE from the appropriate column in Part C, Retail or Service LINE 16 (column a): Enter the amount of QBF income. Attach a schedule detailing how the QBF income was determined. QBF income is the Kansas taxable income derived by the taxpayer or legal entity making the investment from the operation of the qualified facility. See the example worksheet on page 8 of the Schedule K-34. number line 40. number line 42. LINE 8a (column b): If this is a new credit, enter number of QBFE from the current year’s appropriate column in Part C, line 40. If this is a carry forward leave blank. LINE 17 (column a): Corporate or Privilege Taxpayers: The legal entity making the qualified investment must divide its QBF income by its total Kansas taxable income. This percentage must then be multiplied by the legal entity’s Kansas income tax liability or privilege tax liability resulting in tax on the QBF income. See example on page 9. Individual Taxpayers: A sole proprietorship, partnership or S corporation must determine the QBF income. The sole proprietor, partner or shareholder must then multiply the total QBF income by the percentage owned or per share basis to arrive at the individual’s share of QBF income. The individuals share of QBF income must then be multiplied by an effective tax rate. The effective tax rate is the individual’s total Kansas tax liability divided by that individual’s total Kansas taxable income. The resulting amount is the tax on that individual’s QBF income. See example on page 10. LINE 8b: Enter the total Kansas payroll for the qualified business facility employees identified on line 8a. LINE 9 (column a): If this is a new credit, enter credit amount from the appropriate column in Part C, line 43. For each of the nine succeeding tax years, enter credit amount from the appropriate column in Part C, line 43. LINE 9 (column b): If this is a new credit, enter the credit amount from the appropriate column in Part C, line 43. If this is a carry forward leave blank. LINE 10 (column a): If this is a new credit, enter the QBF investment from the appropriate column in Part D, line 63. For each of the nine succeeding tax years, enter the QBF investment from the appropriate column in Part D, line 65. 10 LINE 18 (column a): Multiply line 17 by 50%. The maximum amount allowed is 50% of the tax on QBF income. See example on page 9. determined by dividing the sum of the number of QBFE on the last business day of each full calendar month during the portion of the taxable year in which the QBF was in operation by the number of full calendar months. In the case of an investment in a QBF which facility existed and was operated by the taxpayer or related taxpayer prior to such investment, the number of QBFE employed in the operation of the facility shall be reduced by the average number of individuals employed in the operation of the facility during the taxable year preceding the taxable year in which the QBF investment was made at the facility (base). The information related to the number of QBFE must be computed on Part C of the Schedule K-34. Current year is the year for which the entity’s tax return is being filed. LINE 19 (column a): Enter amount from line 13 or line 18, whichever is less. Also, enter on the appropriate line of Form K-120 or Form K-130. Shareholder or Partner LINE 20 (column a or column b): Enter the percentage of ownership for this partner or per share basis for this shareholder when credit was first qualified. LINE 21 (column a): Enter the partner or shareholder’s amount of credit. Multiply line 13 by line 20, or enter amount on line 19 (whichever is less). LINE 21 (column b): Enter the partner or shareholder’s amount of credit. Multiply line 13 by line 20. For taxpayers claiming carry forward only, enter the amount of the available carry forward from line 24 of the prior tax year’s Schedule K-34. Retail or Service: When the taxpayer is considered as a “retail or service” or “contractor-retailer” business, the number of QBFE must equal or exceed two. The number of QBFE will be the number computed the year the credit became available and will never increase, although it may decrease, if the number of QBFE for this credit is not maintained for the succeeding nine years. LINE 22 (column a or column b): Enter the partner or shareholder ’s Kansas tax liability (less any other nonrefundable credits). Manufacturer or Nonmanufacturer: When the taxpayer meets the definitions of: a. manufacturer, the increase of QBFE must equal or exceed two. b. nonmanufacturer, the increase of QBFE must equal or exceed five. c. business headquarters “ancillary support”, NAICS code 45411, 511210 or 711212, the increase in QBFE must equal or exceed twenty. Part C determines the number of qualified employees at the facility and amount of employee credit. Data from this schedule will be transferred to Part B, Schedule K-34. Part C displays all ten years that a retail or service credit has to be recomputed or each year that a manufacturer or nonmanufacturer may have a carry forward. Continue to use Part C Schedule K-34 from year to year until the ten years of the retail or service credit has been exhausted or the carry forward is exhausted for the manufacturer or nonmanufacturer. LINE 23 (column a or column b): Enter the amount from line 21 or line 22, whichever is less. Also enter this amount on the appropriate line of Forms K-40 or K-41. Credit Deferment: Enter the year the credit will be deferred (cannot exceed three years). Employees and investment must be maintained during the years the credit is deferred. Part C and Part D of Schedule K-34 must be submitted for each of these years to report the QBFE and QBF investment. LINE 24 (column b): Subtract line 23 from line 21. Enter on line 70, PART D for the appropriate year. This amount cannot be less than zero. Payroll Information LINE A: Enter the entity’s total number of employees in the state of Kansas for this tax period. LINE B: Enter the total compensation paid during this tax period for total number of employees reported on line A. PART C - DETERMINING QUALIFIED EMPLOYEES AND CREDIT Retail or Service credit, use Columns A, B and C to establish a credit for the first time at a location, and a new column for each of the succeeding nine years to recompute the credit or to start a new layer. A new column must be filled out to recompute the credit each year. A qualified business facility employee (QBFE) is defined as a person who is employed by the taxpayer in the operation of the QBF as a direct result of the qualified investment made during the taxable year for which the credit is claimed. A person shall be considered engaged if such person performs duties in connection with the operation of the QBF on: A) regular, full-time basis, B) part-time basis, provided the person is customarily performing such duties at least 20 hours per week throughout the taxable year, or, C) seasonal basis, provided such person performs such duties for substantially all of the season customary for the position in which the person is employed. The number of QBFE during any taxable year shall be determined by dividing by 12 the sum of the number of QBFE on the last business day of each month of the taxable year. If the QBF is in operation for less than the entire taxable year, the number of QBFE shall be Manufacturer and Nonmanufacturer use Columns A, B and C to establish a credit at one location for the first time. The current year information must be filled out for each year that any carry forward is being claimed. Use the next column available for the current year to verify that the employees have been maintained. LINES 25 through 36 (column A): Enter the months in the order of the filing period being used by the legal entity. LINES 25 through 36 (column B): Enter year-end date of the legal entity’s filing period for the prior taxable year. Column B is used to compute activity at the QBF prior to the year in which a credit is qualified. That is referred to as the “base” year. 11 If this is a new facility in Kansas or the operations have moved from out of state to a new location in Kansas, this column will be left blank. If the facility was in operation in the prior tax year or the taxpayer has moved from a prior Kansas location, enter the total number of employees at this facility as of the last business day of each month of the taxable year preceding the tax year the investment initially qualified. facility in this taxable year, the average number of transferred employees should be included in the base amount. LINE 40 (columns C through L): Subtract line 39 from line 38. If amount is less than the minimum increase required for this credit (2, 5 or 20) then no credit is allowed. If amount is a negative figure it must be removed from the employee counts on previous retail or service credit years (see EXAMPLE 1 below showing analysis of the fourth year). LINES 25 through 36 (columns C through L): Enter year end date of the legal entity’s filing period for the current year. Use column C if establishing a credit for the first time and complete columns D through L for each succeeding tax year of the credit for recomputing a retail or service credit or for a manufacturer or nonmanufacturer carry forward. LINE 41 (columns C through L): Enter the number of decreased qualified employees from line 40 from the current year. This number must be equal to or less than the number of qualified employees being claimed on line 40 (see EXAMPLE 1 below). Enter the total number of employees at the facility as of the last business day of each month of the taxable year the investment qualified. LINE 42 (columns C through L): Subtract line 41 from line 40. This is the adjusted number of qualified employees to be carried to line 8a, Part B, Schedule K-34. If the adjusted average number of employees falls below the minimum number of employees required to claim a credit, then the credit is forfeited. LINE 37 (column B through L): Add amounts on lines 25 through 36. LINE 38 (column B through L): Divide line 37 by the number of full months in this tax year the facility was available for use. The resulting number of employees must then be rounded down to the next whole number. LINE 43 (columns C through L): Retail or Service: Taxpayers meeting the definition of “retail or service” or “contractor-retailer” and computing the employee credit for the first year, multiply line 40 by $100. For the succeeding tax years, multiply line 40 or line 42 by $100 as applicable. Manufacturer/Nonmanufacturer: When the taxpayer meets the definition of “manufacturer or nonmanufacturer” and the QBF is located in: • A “nonmetropolitan region” - multiply line 40 by $2,500 • Any “other region” - multiply line 40 by $1,500 LINE 39 (columns C through L): For Column C enter number of base employees from line 38 in Column B or the prior taxable year. For columns D through L the average employees on line 38 becomes the base on line 39 for the current year. If current tax year column contains employees that were transferred from another Kansas EXAMPLE 1 (for lines 40 and 41) – Retail or Service Credit Only (C) First year employees Line Line Line Line Line * ** 38 39 40 41 42 Average Employees Base Employees Qualified Employees Decrease in Employees Adjusted Employees (D) Second year employees 12 0 12 -2** 10 15 12 3 -3** 0 (E) Third year employees 15 15 0 * 0 (F) Fourth year employees 10 15 -5 0 No credit was established for this year, no employees to deduct. Line 41 was computed by decreasing by 3 of the 5 employees lost in the fourth year. Additional decreases of employees in succeeding years should be added to line 41, column C and line 42 adjusted accordingly. The qualified business facility investment shall be determined by dividing by twelve the sum of the total value of such property at that facility on the last business day of each calendar month of the taxable year. If the QBF is in operation for less than an entire taxable year, the qualified business facility investment shall be determined by dividing the sum of the total value of such property at that facility on the last business day of each full calendar month during the portion of such taxable year during which the qualified business facility was in operation by the number of full calendar months during the period. In the case of an investment in a QBF which existed and was operated by the taxpayer or related PART D - DETERMINING QUALIFIED INVESTMENT AND CREDIT Qualified business facility investment is the value of the real and tangible personal property, except inventory or property held for sale to customers in the ordinary course of the taxpayer’s business, which constitutes the qualified business facility, or which is used by the taxpayer in the operation of the qualified business facility, during the taxable year for which the business and job development credit is claimed. The value of such property during the taxable year shall be: 1) its original cost if owned by the taxpayer; or 2) eight times the net annual rental rate if leased by the taxpayer. 12 taxpayer prior to such investment, the amount of the taxpayer’s QBF investment shall be reduced by the average amount of QBF investment of the taxpayer or related taxpayer in the facility for the taxable year preceding the taxable year in which the QBF investment was made at the facility (base). Part D, Schedule K-34 determines the amount of qualified investment at the facility and the amount of investment credit. This information will be transferred to Part B, Schedule K-34. Part D displays all ten years that a retail or service credit has to be recomputed. Continue to use Part D from year to year until the ten years of the retail or service credit has been exhausted. LINE 59 (column B through L): Add amounts on lines 57 and 58. LINE 60 (column C through L): For Column C enter amount of base investment from line 59, Column B or the prior taxable year. For columns D through L the average investment on line 59 becomes the base on line 60 for current year. If current tax year column contains investment that was transferred from another Kansas facility in this taxable year, the average amount of that transferred investment should be included in the base amount. LINE 61 (column C through L): Subtract line 60 from line 59. This is the total of investment in excess of the base. Column C, or current taxable year is a negative number stop here, you are not qualified for the credit. Current year is the year for which the entity’s tax return is being filed. LINE 62 (column C through L): Enter the average amount of investment that was made during the year(s) that did not directly result in the hiring of qualified employees. This will include investment made during this tax year and prior tax years since the qualified investment was made. If this is qualified investment at a new location, no entry will be made on this line. If you made qualified investment at an existing facility, you must enter the portion of the new investment that did not directly result in the hiring of qualified employees. This amount will be subtracted from the total qualified business facility investment. Retail or Service credit use columns A, B and C to establish a credit for the first time at a location, and a new column for each succeeding nine years to recompute the credit or to start a new layer. A new column must be filled out to recompute the credit each year. Manufacturer and Nonmanufacturer use columns A, B and C to establish a credit at one location for the first time. Investment information must be completed for the initial year the credit is claimed but not for succeeding years if only claiming available carry forward. LINES 44 through 55 (column A): Enter the months in the order of the filing period being used by the legal entity. LINE 63 (column C through L): Subtract line 62 from line 61. This is the amount of investment that qualifies for the credit. For the first year, if this is a negative number then this current year does not qualify for the credit. For retail or service credits, columns D through L must be taken from the investment amounts on previous retail service credit years (see EXAMPLE 2 on next page). LINES 44 through 55 (column B): Enter year end date of the legal entity’s taxable year preceding the tax year the investment initially qualified. Column B is used to compute activity at the QBF prior to the year in which a credit is qualified. That is referred to as the “base” year. Enter the total amount of investment at the facility as of the last business day of each month of the taxable year the investment qualified. LINE 64 (column C through L): Retail or Services credits, for columns D through L, enter the difference in amount of qualified business facility investment change due to a decrease after computing current investment (see EXAMPLE 2 showing an analysis of the fourth year.) LINES 44 through 55 (columns C through L): Enter the year end date of the legal entity’s filing period for the current year. Use column C if establishing a credit for the first time and complete columns D through L for each succeeding tax year of the credit for recomputing a retail or service credit. Manufacturers and nonmanufacturers do not have to complete these unless establishing a new credit. Enter the total investment at the facility as of the end of each full month of operation at the qualified business facility. If the QBF was in operation for only three full months during the tax year, you would only enter those three months. LINE 65 (column C through L): Subtract line 64 from line 63. LINE 66 (column C through L): Divide line 65 by $100,000. If the remainder is $51,000 or more, round to the next higher credit factor number. If the adjusted qualified investment is less than $51,000, but greater than zero, the investment credit is zero. However, the associated employee credit is still eligible. LINE 67 (column C through L): This is the total amount of credit available for your qualified investment. (Multiply line 66 by $100 or $1,000, whichever applies to your type of business as shown on page 1, line 4 of Schedule K-34.) LINE 56 (column B through L): Add amounts on lines 44 through 55. LINE 57 (column B through L): Divide line 56 by the number of full months in the tax year the facility was available for use. LINE 68 (column C through L): Add line 43 of Part C Total Employee Credit to line 67 of Part D - Total Investment Credit. LINE 58 (column B through L): Property rented by the taxpayer and used at the QBF is valued at eight times the net annual rental rate. LINE 69 (column C through L): Enter the amount of credit being used for the current filing period and the cumulative amount of credit used from prior periods. 13 LINE 70 (column C through L): (Manufacturer or Nonmanufacturer only.) Subtract line 69 from line 68. If you have a credit carry forward you must maintain the minimum number of qualified employees in the succeeding tax year in order to claim any remaining carry forward credit. That minimum number is as follows: • nonmanufacturing must equal at least 5 qualified business facility employees • business headquarters, ancillary support or NAICS codes 45411, 511210, and 711212 must equal an increase of at least 20 employees. If you fail to maintain the minimum number of qualified employees the amount of remaining carry forward credit is forfeited. • manufacturing must equal at least 2 qualified business facility employees EXAMPLE 2 (for lines 63 and 64) – Retail or Service Credit Only Investment Line Line Line Line Line Line Line 59 60 61 62 63 64 65 (C) First year investment (D) Second year investment Total investment $25,000 Base investment 0 Increased investment 25,000 Non-related investment 0 Average qualified investment 25,000 Decrease in investment* 0 Adjusted qualified investment 25,000 (E) Third year investment $30,000 $29,500 25,000 30,000 5,000 -500 0 0 5,000 -500 -3,000 (-500 -2,500) 0 2,000 0 (F) Fourth year investment $27,000 29,500 -2,500 0 -2,500 0 0 * Line 64 was computed by decreasing line 63 by the amounts lost in the third and fourth year. Additional decreases in investment should be added to line 64, Column C and line 65 adjusted accordingly. In EXAMPLE 2, the first year’s increased investment in line 59 is $25,000. In the second year it is $5,000 (line 61). In the third year, there was a decrease in investment of $500. This decrease affects the prior computations of investment. The decrease of $500 is subtracted from the second year’s increased investment of $5,000 for a net increase remaining of $4,500. In the fourth year, the investment decreased by another $2,500. This decrease offsets the second year’s investment. The total decrease is $3,000 [–$500 (third year of increased investment) -$2,500 (fourth year of increased investment)]. The revised qualified investment for the second year is left at $2,000, line 65. Business Headquarters: A facility where principal officers of the business are housed and from which direction, management or administrative support for transactions is provided for a business or division of a business or regional division of a business. (K.S.A. 74-50,114(c)) Commencement of Commercial Operations: Commencement of commercial operations shall be deemed to occur during the first taxable year for which the QBF is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue producing enterprise in which the taxpayer intends to use the QBF. (K.S.A. 79-32,154(f)) Facility: A facility is defined as any factory, mill, plant, refinery, warehouse, feedlot, building or complex of buildings located within the state, including the land on which the facility is located and all machinery, equipment, and other real and tangible personal property located at or within a facility and used in connection with the operation of the facility. The word building shall include only structures within which individuals are customarily employed or which are customarily used to house machinery, equipment or other property. (K.S.A. 79-32,154(a)) If there is a complex of buildings, the entire complex, including all buildings in the complex, is considered by KDOR (Kansas Department of Revenue) to be a single facility. Facility Types that Cannot Claim this Credit: No credit will be allowed for an investment in a public utility DEFINITIONS AND TERMS Ancillary Support: A facility which is operated by a business and whose function is to provide services in support of the business, but is not directly engaged in the business’ primary function. (K.S.A. 74-50,114(a)) Any ancillary support business which would otherwise be eligible for an income or privilege tax credit shall incorporate in its tax filing for the credit a statement from the secretary of commerce which includes a finding by the secretary that the job expansion incident to the credit claimed would not have occurred in the absence of the credit. (K.S.A. 74-50,114(g)) Base: The average employees and investment that reduce the current tax period computation of the credit. If the qualified business facility (QBF) was in operation prior to the implementation of the qualified business facility income (QBFI), an average of the prior tax periods employees and investment is computed. If the investment is in a new facility or is new to Kansas the base would be zero. If the investment is being moved from one location in Kansas to another location in Kansas, the base would be the average number of employees and average investment in the taxable year preceding the taxable year in which the qualified business facility investment was made at the new Kansas location. Business: Business means any manufacturing business or nonmanufacturing business. (K.S.A. 74-50,114(b)) 14 1. The facility must be employed by the taxpayer in the operation of a revenue producing enterprise as defined. It will not be considered a QBF if the taxpayer’s only activity is to lease it to another person or firm. If the taxpayer employs only a portion of the facility in the operation of a revenue producing enterprise, and leases another portion of the facility to another person or firm or does not otherwise use the other portion in the operation of a revenue producing enterprise, that portion employed by the taxpayer in the operation of a revenue producing enterprise shall be considered a QBF if the other requirements in (2) below are met. 2. If the facility was acquired by the taxpayer from another person or firm, the facility must not have been employed immediately prior to the transfer of its title to the taxpayer, or to the commencement of the term of the lease of the facility to the taxpayer, by any other person or firm in the operation of a revenue producing enterprise and the taxpayer continues the operation of the same or substantially identical revenue producing enterprise. (K.S.A. 79-32,154(b)) Qualified Business Facility Employee (QBFE): A QBFE is defined as a person who is employed by the taxpayer in the operation of a QBF during the taxable year for which the credit is claimed. A person will be deemed to be so engaged if they perform duties in connection with the operation of the QBF on a: 1) regular full-time basis; 2) part-time basis, providing the person normally performs this type of duty at least twenty hours each week throughout the taxable year or, 3) seasonal basis, provided the employee performs duties for substantially all of the season for which employees are customarily hired. The number of QBFEs during any taxable year shall be determined by dividing by twelve the sum of the number of QBFEs on the last business day of each month of the taxable year. If the QBF is in operation for less than the entire taxable year, the number of QBFEs shall be determined by dividing the sum of the number of QBFEs on the last business day of each full calendar month during the portion of the taxable year during which the QBF was in operation by the number of full calendar months during the period. In the case of an investment in a QBF, which facility existed and was operated by the taxpayer or related taxpayer prior to new investment. The number of QBFEs employed in the operation of the facility shall be reduced by the average number, computed as provided in this paragraph, of individuals employed in the operation of the facility during the taxable year preceding the taxable year in which the QBF investment was made at the facility. (K.S.A. 79-32,154(d)) Qualified Business Facility (QBF) Income: Qualified Business Facility Income shall mean the Kansas taxable income derived by the taxpayer from the operation of the QBF. If a taxpayer has income derived from the operation of a QBF as well as from other activities conducted within this state, the Kansas taxable income derived by the taxpayer from the operation of the QBF shall be determined by multiplying the taxpayer’s Kansas taxable income by a fraction, the numerator of which is the property factor as defined below, plus the payroll as defined in K.S.A. 66-104 and amendments thereto, or a swine production facility as defined in K.S.A. 175903 and amendments thereto. Leaving the Facility-Investment/Employees: No credit will be allowed for any investment that leaves the facility per K.S.A. 79-32,153(a) and 79-32,160(a). This would include, but not be limited to, motorized vehicles. Where an employee performs services for the taxpayer outside the QBF, the employee shall be considered engaged or maintained in employment at the QBF if: 1) the employee’s service performed outside the QBF is incidental to the employee’s service inside the QBF or, 2) the base of operations or, the place from which the service is directed or controlled, is at the QBF. Manufacturing Business: Manufacturing business means all commercial enterprises identified under the manufacturing Standard Industrial Classification Codes, major groups 20 through 39. (K.S.A. 74-50,114(e)) KDOR would find that any commercial enterprise which has been identified under the manufacturing sector under the North American Industry Classification system shall also be considered as a manufacturing business for purposes of the business and job development credit. Metropolitan County: Metropolitan county means the county of Douglas, Johnson, Leavenworth, Sedgwick, Shawnee or Wyandotte. (K.S.A. 74-50,114(f)) Note: Legislation repealed the businesses & job development tax credits (both jobs and investment) for all metro counties starting in tax year 2011 (Douglas, Johnson, Leavenworth, Sedgwick, Shawnee, and Wyandotte). Nonmanufacturing Business: Nonmanufacturing business means any commercial enterprise other than a manufacturing business or retail business. Nonmanufacturing business shall also include the business headquarters of an enterprise, ancillary support of an enterprise, and an enterprise designated under standard industrial classification codes 5961, 7948-0201 or 7372 regardless of the firm’s classification as a retail business if that facility facilitates the creation of at least 20 new full-time employees. (K.S.A. 74-50,114(g)) Nonmetropolitan Region: A region established under K.S.A. 74-50,116 and amendments thereto and is comprised of any county or counties which are not metropolitan counties. (K.S.A. 74-50,114(h)) KDOC (Kansas Department of Commerce) designates the non-metropolitan regions for a specified period of time. Any taxpayer that invests in a QBF that is located in a designated nonmetropolitan region will be allowed an enhanced credit for QBF employees. Nonqualified Employees or Investment: Employees and investment that are transferred from one Kansas facility to another are not allowed to be included as increased employees or increased investment. Other Region: A county or region that has not been designated as a metropolitan county by statute and has not been designated by KDOC as a nonmetropolitan region. Qualified Business Facility (QBF): QBF shall mean a facility that meets the following requirements: 15 factor, as defined below, and the denominator of which is two. In the case of financial institutions, the property and payroll factors shall be computed utilizing the specific provisions of the apportionment method applicable to financial institutions, if enacted, and the QBF income shall be based upon net income. The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in connection with the operation of the QBF during the tax period, and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used in this state during the tax period. The average value of all such property shall be determined as provided in K.S.A. 79-3281 and 79-3282, and amendments thereto. The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the taxpayer for compensation to persons qualifying as QBF employees at the QBF, and the denominator of which is the total amount paid in this state during the tax period by the taxpayer for compensation. The compensation paid in this state shall be determined as provided in K.S.A. 79-3283, and amendments thereto. The formula set forth shall not be used for any purpose other than determining the QBF income attributable to a QBF. (K.S.A. 79-32,154(g)) Qualified Business Facility (QBF) Investment: QBF investment shall mean the value of the real and tangible personal property, except inventory or property held for sale to customers in the ordinary course of the taxpayer’s business, which constitutes the QBF, or which is used by the taxpayer in the operation of the QBF, during the taxable year for which the business and job development credit is claimed. The value of such property during such taxable year shall be: 1) its original cost if owned by the taxpayer, or 2) eight times the net annual rental rate, if leased by the taxpayer. The net annual rental rate shall be the annual rent rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals. The QBF investment shall be determined by dividing by twelve the sum of the total value of such property at that facility on the last business day of each calendar month of the taxable year. If the QBF is in operation for less than an entire taxable year, the amount of QBF investment shall be determined by dividing the sum of the total value of such property at that facility on the last business day of each full calendar month during the portion of such taxable year during which the QBF was in operation by the number of full calendar months during such period. In the case of an investment in a QBF, which facility existed and was operated by the taxpayer or related taxpayer prior to such investment, the amount of the taxpayer’s QBF investment in such facility shall be reduced by the average amount, computed as provided in this paragraph, of the investment of the taxpayer or a related taxpayer in the facility for the taxable year preceding the taxable year in which the QBF investment was made at the facility. (K.S.A. 79-32,154(e)) Related Taxpayer: Related taxpayer shall mean: 1) a corporation, partnership, trust or association controlled by the taxpayer; 2) an individual, corporation, partnership, trust or association in control of the taxpayer or, 3) a corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association in control of the taxpayer. For the purposes of this act, “control of a corporation” shall mean ownership, directly or indirectly, of stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of all other classes of stock of the corporation; “control of a partnership or association” shall mean ownership of at least 80% of the capital or profits interest in such partnership or association; and “control of a trust” shall mean ownership, directly or indirectly of at least 80% of the beneficial interest in the principal or income of such trust. (K.S.A. 79-32,154(h)) Retail or Service Business: Retail or Service Business means: 1) any commercial enterprise primarily engaged in the sale at retail of goods or services taxable under the Kansas retailer’s sales tax act; 2) any service provider set forth in K.S.A. 17-2707, and amendments thereto; 3) any bank, savings and loan or other lending institution; 4) any commercial enterprise whose primary business activity includes the sale of insurance and, 5) any commercial enterprise deriving its revenues directly from noncommercial customers in exchange for personal services such as, but not limited to, barber shops, beauty shops, photographic studios and funeral services. (K.S.A. 74-50,114(i)) Revenue Producing Enterprise: A revenue producing enterprise is defined as one of the following: • The assembly, fabrication, manufacture or processing of any agricultural, mineral or manufactured product; • The storage, warehousing, distribution or sale of any products of agriculture, aquaculture, mining or manufacturing; • The feeding of livestock at a feedlot; • The operation of laboratories or other facilities for scientific, agricultural, aquacultural, animal husbandry or industrial research, development or testing; • The performance of services of any type; • The feeding of aquatic plants and animals at an aquaculture operation; • The administrative management of any of the foregoing activities; or, • Any combination of the above activities. Revenue producing enterprise shall not mean a swine production facility as defined in K.S.A. 17-5903, and amendments thereto. (K.S.A. 79-32,154(c)) Same or Substantially Identical Revenue Producing Enterprise: A revenue producing enterprise in which the products produced or sold, services performed or activities conducted are the same in character and use, are produced, sold, performed or conducted in the same manner and to or for the same type of customers as the products, services or activities produced, sold, performed or conducted in another revenue producing enterprise. (K.S.A. 79-32,154(i)) 16 NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODES AND TITLE DESCRIPTIONS Effective July 1, 2010, K.S.A. 74-50,131 Kansas enterprise zone act changed citations from (SIC) Standard Industrial Classification code to (NAICS) the North American Industry Classification System NAICS codes, developed under the authority of the office of management and budget of the office of the president of the United States, replaces the SIC codes and is an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. The Kansas Department of Revenue has made a preliminary categorization of the NAICS codes to allow the taxpayer to determine which industry group the taxpayer’s business activity is under. However, exceptions do occur. Industry groups are allowed different amounts of credit, require different levels of qualified employees and methods of computation. The industry groups are divided into four groups: (1) Manufacturing; (2) Nonmanufacturing; (3) Retail and Services; and (4) Retail or Nonmanufacturing (depending upon the ultimate consumer). Any questions regarding a specific industry group may be directed to the Office of Policy and Research, Kansas Department of Revenue, PO Box 3506, Topeka, KS 666101-3506. The following is a list of NAICS codes and title descriptions. The NAICS code for your business facility must be entered on line 2c, Schedule K-34. MANUFACTURING K.S.A. 74-50,114(e) provides the definition of a manufacturing business as “all commercial enterprises identified under the manufacturing NAICS subsectors 311 to 339. Manufacturing 311111 Dog and Cat Food Manufacturing 311119 Other Animal Food Manufacturing 311211 Flour Milling 311212 Rice Milling 311213 Malt Manufacturing 311221 Wet Corn Milling 311222 Soybean Processing 311223 Other Oilseed Processing 311225 Fats and Oils Refining and Blending 311230 Breakfast Cereal Manufacturing 311311 Sugarcane Mills 311312 Cane Sugar Refining 311313 Beet Sugar Manufacturing 311320 Chocolate and Confectionery Manufacturing from Cacao Beans 311330 Confectionery Manufacturing from Purchased Chocolate 311340 Nonchocolate Confectionery Manufacturing 311411 Frozen Fruit, Juice, and Vegetable Manufacturing 311412 Frozen Specialty Food Manufacturing 311421 Fruit and Vegetable Canning 311422 Specialty Canning 311423 Dried and Dehydrated Food Manufacturing 311511 Fluid Milk Manufacturing 311512 Creamery Butter Manufacturing 311513 Cheese Manufacturing 311514 Dry, Condensed, and Evaporated Dairy Product Manufacturing 311520 Ice Cream and Frozen Dessert Manufacturing 311611 Animal (except Poultry) Slaughtering 311612 Meat Processed from Carcasses 311613 Rendering and Meat By-product Processing 311615 Poultry Processing 31171
Extracted from PDF file 2019-kansas-form-k-34.pdf, last modified September 2011

More about the Kansas Form K-34 Corporate Income Tax Tax Credit TY 2019

We last updated the Business and Job Development Credit in March 2020, so this is the latest version of Form K-34, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form K-34 directly from TaxFormFinder. You can print other Kansas tax forms here.

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-41 Fiduciary Income Tax
Form K-4 Employees Withholding Allowance Certificate
Form K-89 Rural Opportunity Zone Credit Instructions
Form K-120ES Corporate Estimated Tax Payment Vouchers
Form K-30 Angel Investor Credit

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-34 from the Department of Revenue in March 2020.

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Form K-34 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-34

We have a total of seven past-year versions of Form K-34 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2019 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)

2018 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)

2017 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)

2016 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)

Credit Schedules 2015 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)

Credit Schedules 2013 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)

Credit Schedules 2011 Form K-34

Business and Job Development Credit K-34 (Rev. 8-11)


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