Schedule K-59 - High Performance Incentive Program Credits (Page 4 of 4) in pdf

PART D - NEW INVESTMENT INFORMATION

in the prior year and the taxpayer had been certified previously under

Line 20: Enter the total compensation paid during this tax period for the

the HPIP program, enter the total cumulative value of HPIP investment

employee(s) identified on line 19.

at this QBF on the last business day of each full calendar month during

Line 21: Enter the income or loss generated during this tax period as a

the portion of the preceding tax year during which the QBF was in

direct result of the qualified business facility investment made.

operation.

Line 22: Enter the sales generated during this tax period as a direct

Column (3) – Qualifying Year-QBF Monthly Investment: In the

result of the qualified business facility investment made.

heading of Column (3), enter the tax year you are establishing the

Line 23: Enter the entity’s total number of employees in the state of

current credit. On lines 11a through 11l, enter the total cumulative

Kansas for this tax period.

value of HPIP investment on the last business day of each full calendar

Line 24: Enter the total amount of compensation paid during this tax

month of operation at the QBF during the portion of the taxable year

period for the total number of employees on line 23.

the QBF was in operation. If the QBF was in operation for only three

PART E - CARRY FORWARD SCHEDULE

full months during the tax year, you would enter the investment for

those three months.

This schedule will track the credit carry forward available for this

Line 11m: For each Column, (2) and (3), add the amounts on lines 11a

particular investment credit. You will complete a new line for each tax

through 11l and enter the result on line 11m.

year the credit is carried forward, on the same schedule, until the credit

is exhausted or the 16 succeeding tax years have lapsed. Once a credit

Line 11n: For each Column, (2) and (3), divide the total in line 11m by the

is established, any succeeding tax year in which the carry forward

number of full months the QBF was in operation.

credit is not claimed will be considered as one of the 16

succeeding tax

Line 11o: For each Column, (2) and (3), enter the value of the property

years.

rented by the taxpayer and used at the QBF. Rented property is

To claim remaining carry forward the taxpayer must be recertified for

valued at eight times the net annual rental rate.

the majority of the tax year in which the carry forward is to be claimed,

Line 11p: For each Column, (2) and (3), add lines 11n and 11o.

except that no carry forward shall be allowed for deduction after the

Line 11q: Enter the base amount shown on line 11p, Column (2).

taxable year succeeding the taxable year in which the credit initially

Line 11r: For Column (3), subtract line 11q from line 11p.

was claimed. To obtain the recertification, you must complete the HPIP

Restricted Application with the Kansas Department of Commerce.

Line 11s: Minimum investment allowed is $50,000.

When claiming a carry forward credit, you will need to submit the first

Line 11t: Subtract $50,000 from line 11r in Column (3).

page of Schedule K-59, with the taxpayer information as contained in

Line 11u: Multiply line 11t, Column (3), by 10% and enter the result.

the header, and lines 10, 13, 14, 15, 16, PART D and PART E completed.

Line 12: Partners, shareholders or members must enter their ownership

Lines 25 through 40:

percentage in the partnership or S corporation. All other taxpayers

a. Tax Year – For line 25, enter the first tax year following the tax

enter 100%.

year the credit was computed. For lines 26 through 40, enter the

Line 13: Multiply line 11u by line 12. If you are completing this form to use

next consecutive tax year.

available carry forward only, enter the amount of the available credit

b. Certification No. – Enter the certification or recertification

forward from the prior tax year.

number from KDOC for this tax year entered on line a.

Line 14: Enter the total Kansas tax liability for the current tax year after all

c. Certification Period – Enter the time period covered under the

previously claimed credits (including the HPIP Training and Education

certification or recertification for the tax year.

Tax Credit calculated in PART B plus any prior year carry forward

d. Carry Forward Amount – For line 25, enter the amount from

available).

PART C, line 16. For lines 26 through 40, enter the amount of

Line 15: Enter the lesser of line 13 or line 14. This is the amount of credit

available credit forward from the prior tax year until the 16

that can be used this tax period. Enter this amount on the appropriate

succeeding tax years have expired or total carry forward has

line of Form K-40, Form K-41, Form K-120, or Form K-130.

been used. Lines 35 through 40 are for HPIP carry forward on

UNEXPIRED credits where the investments were placed into

Line 16: Subtract line 15 from line 13. Do not enter an amount less than

service in taxable years commencing after December 31, 2000.

zero. This is the amount of credit to be carried forward. PART D will

need to be completed for the next tax period. Enter this carry forward

Follow the instructions on Line 13 to calculate the amount

amount on PART D, line d of the appropriate tax year.

of credit to be used this tax year.

NOTE: If you claim the investment tax credit allowed on line 15, Schedule

e. Credit Used – Enter the credit amount to be applied against the

K-59, you may not claim a business and job development credit on Schedule

tax liability of the tax year and include it on line 15.

K-34 using the same QBF investment.

f. Carry Forward Available – Subtract line e from line d. This is

the amount of credit available for the next tax year. Enter this

amount on line 16.

Lines 17 through 24: K.S.A. 79-32,243 requires that the Kansas

TAXPAYER ASSISTANCE

Department of Revenue collect specific information for all taxable years

commencing after December 31, 2005. The information collected will

Questions you may have about qualifying for the high performance

be used by the department in evaluating the effectiveness of the High

incentive program should be addressed to:

Performance Incentive Program tax credits.

Kansas Department of Commerce

It is important that the information provided in Part D is for the entity

1000 SW Jackson, Suite 100

claiming the tax credit. If you are completing Schedule K-59 for carry

Topeka, KS 66612-1354

forward purposes only, you should complete lines 17-24 for the number

of jobs created or retained, associated payroll, revenue and sales

Phone: (785) 296-5298

generated during this tax period, not cumulative from the beginning of

this credit.

For assistance in completing this schedule contact the Kansas

Department of Revenue:

Line 17: Enter the number of actual jobs this taxpayer has created during

Tax Operations

this tax period as a direct result of the qualified business facility

Docking State Office Building, 1st fl.

investment made.

915 SW Harrison St.

Line 18: Enter the total compensation paid during this tax period for the

Topeka, KS 66625-2007

employees identified on line 17.

Phone: (785) 368-8222

Line 19: Enter the number of actual jobs that have been retained by this

Fax: (785) 291-3614

taxpayer during this tax period that would have been eliminated if not

Web site:

for this qualified business facility investment.

Schedule K-59 - High Performance Incentive Program Credits Page 4

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