Tax Credit for Research

In order to stimulate increased research and development activity by Kansas businesses, the State offers an income tax credit equal to 6.5 percent of a company's investment in research and development above an average expenditure of the previous three-year period. Only 25 percent of the allowable annual credit may be claimed in any one year. Any remaining credit may be carried forward in 25 percent increments until exhausted. Expenditures in research and development activities are defined by Kansas law as separate from other allowable expense deductions identified by federal Internal Revenue code. This tax credit was renewed and made permanent by the 2001 Kansas Legislature.