Fillable Schedule K-30 - Kansas Angel Investor Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-30

SPECIFIC LINE INSTRUCTIONS

GENERAL INSTRUCTIONS

PART A —GENERAL INFORMATION

K.S.A. 74-8133 provides a tax credit against the income or

premium tax of any angel investor for a cash investment in the

LINES 1 through 6 – Complete the information for the qualified

qualified securities of a qualified Kansas business.

Kansas business and original investor as requested.

Before an angel investor may be entitled to receive tax credits,

PART B —COMPUTATION OF CREDIT FOR THIS YEAR’S INVESTMENT

such investor must have made a cash investment in a qualified

security of a qualified Kansas business. The investment must be

LINE 7 – Enter total amount of cash investment made this tax

made in a business that has been approved by KDOC (Kansas

year.

Department of Commerce) as a qualified business prior to the date

LINE 8 – This percentage determines the maximum credit

on which the cash investment is made. For information and

allowable as a result of the investment made during this tax

assistance regarding the approval of a qualified Kansas business,

year. Do not make an entry on this line.

contact KDOC at (785) 296-3481.

LINE 9 – Multiply line 7 by line 8 and enter the result. This is the

The credit is 50% of such investors’ cash investment in any

maximum credit allowable.

qualified Kansas business, subject to the following limitations:

LINE 10 – Partners, shareholders or members: Enter the

• No tax credits will be allowed for more than $50,000 for a single

percentage that represents your proportionate share in the

Kansas business or a total of $250,000 in tax credits for a single

partnership, S corporation, LLC or LLP. All other taxpayers:

year per investor who is a natural person or owner of a

Enter 100%.

permitted entity investor.

LINE 11 – Multiply line 9 by line 10 and enter result. This is your

share of the total credit for the amount invested this year.

• No tax credits shall be allowed for any cash investments in

qualified securities for any year after the year 2016.

PART C —COMPUTATION OF TOTAL CREDIT CLAIMED THIS TAX YEAR

• The total amount of tax credits shall not exceed $6,000,000

LINE 12 – Enter the carry forward amounts available from prior

for tax year 2008 and each tax year thereafter, except that for

years’ K-30 schedules and enclose a copy of those

tax year 2011, the total amount of tax credits shall not exceed

schedules.

$5,000,000.

LINE 13 – Add lines 11 & 12 and enter the result.

• No investor shall claim a credit for cash investments in Kansas

LINE 14 – Enter your total Kansas tax liability for the current tax

Venture Capital, Inc.

year after all credits other than the credit allowed for

• No Kansas venture capital company shall qualify for the tax

investments made during this tax year.

credit for an investment in a fund created by articles 81, 82,

LINE 15 – Enter the lesser of line 13 or line 14. Enter this amount

83 or 84 of chapter 74 of the Kansas Statutes Annotated.

on the appropriate line of Form K-40.

If the amount by which that portion of the credit allowed by this

PART D —COMPUTATION OF CARRY FORWARD CREDIT

section exceeds the investors’ liability in any one taxable year, the

remaining portion of the credit may be carried forward until the total

LINE 16 – Subtract line 15 from line 13 and enter result. This

amount of the credit is used. If the investor is a permitted entity

amount cannot be less than zero. Enter this amount on next

investor, the credit provided by this section shall be claimed by the

year’s Schedule K-30.

owners of the permitted entity investor in proportion to their

IMPORTANT: Do not send any enclosures with this

ownership share of the permitted entity investor.

schedule. A copy of the approved KDOC certification

Subject to certain restrictions this credit may be transferred to

form must be kept with your records. If this is a credit

another taxpayer. Contact KDOC at (785) 296-3481 for more

that has been transferred, documentation of the approved transfer

information.

as provided by KDOR (Kansas Department of Revenue) must be

“Angel investor’’ and ‘‘investor’’ mean an accredited investor

retained with your records. KDOR reserves the right to request

who is a natural person or an owner of a permitted entity investor,

additional information as necessary.

who is of high net worth, as defined in 17 C.F.R. 230.501(a) as in

effect on the effective date of this act, and who seeks high returns

TAXPAYER ASSISTANCE

through private investments in start-up companies and may seek

active involvement in business, such as consulting and mentoring

For assistance in completing this schedule contact the Kansas

the entrepreneur.

Department of Revenue:

“Cash investment” means money or money equivalent in

Tax Operations

consideration for qualified securities.

Docking State Office Building, 1st fl.

“Permitted entity investor” means any: a) general partnership,

915 SW Harrison St.

limited partnership, corporation that has in effect a valid election

Topeka, KS 66612-1588

to be taxed as an S corporation under the United States Internal

Phone: (785) 368-8222

Revenue Code, or a limited liability company that has elected to

Fax: (785) 291-3614

be taxed as a partnership under the United States Internal Revenue

Code; and, b) that was established and is operated for the sole

Additional copies of this credit schedule and other tax forms

purpose of making investments in other entities.

are available from our web site at:

Schedule K-30 - Kansas Angel Investor Credit Page 2

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