K-26: Aviation/Aerospace Tax Credit Schedule (Revision 2024-07)
Kansas · Kansas DOR · Used for tax years 2024, 2025, 2026
Kansas Schedule K-26 calculates aviation and aerospace income tax credits for qualified employees and employers. It reports employee credits and carryforwards, along with employer credits for compensation and tuition reimbursements paid to qualified employees.
Who files this form
Use Schedule K-26 to claim Kansas aviation and aerospace tax credits as a qualified employee or qualified employer.
- Qualified employees: Complete only Part A. A qualified employee is a person newly employed full-time by, or first contracting full-time with, a qualified employer on or after January 1, 2022, who has a degree or certificate from a qualified program.
- Qualified employers: Complete only Parts B and C to claim credits for compensation or qualifying tuition reimbursements paid to qualified employees. Your principal business activity must involve the aviation sector.
New employment includes a first Kansas aviation-sector job, moving to Kansas for such a job, or returning after an absence. It does not include someone already working in the Kansas aviation sector immediately before joining another qualified employer.
When it's due
Tax year 2026: No new tax credits may be issued or earned after December 31, 2026.
The supplied text does not give a filing due date for Schedule K-26 for tax years 2024, 2025, or 2026.
What you'll need
Have the information needed to complete the schedule:
- Taxpayer name as shown on the return, Social Security number or EIN, and taxable-year beginning and ending dates.
- Partnership, S corporation, LLC, or LLP name and EIN, if applicable.
- Qualified employer's name and employment or contracting start and end dates.
- Current Kansas tax liability after other credits.
Employees: You also need any employee credit carried forward from the prior year and information explaining how you qualify.
Employers: For each employee, have their name, SSN, address including county, compensation paid, and your proportionate ownership share, if applicable. For tuition reimbursement, also have reimbursement amounts and payment dates, qualified program provider details, the program or course description, degree or certificate award date and type, and tuition amounts needed for the calculation.
How to file
- Complete the taxpayer information at the top of Schedule K-26.
- If claiming as an employee, complete Part A and enter the credit from line 5 on the appropriate line of Form K-40.
- If claiming as an employer, complete a separate Part C sheet for each employee. Combine the compensation credits on Part B, line 7, and tuition reimbursement credits on Part B, line 8. Enter the total from line 9 on the appropriate line of Form K-40, K-41, or K-120.
The supplied text does not specify a mailing address for filing or an e-file method. The address printed in the text is for taxpayer assistance.
For help completing the schedule, contact the Kansas Department of Revenue at 785-368-8222. Additional forms are available at ksrevenue.gov.
Common mistakes
- Do not complete every part: employees complete only Part A; employers complete only Parts B and C.
- Employers must use a separate Part C sheet for each employee.
- Enter “N/A” for the employment end date if the employee is still employed.
- Explain how you qualify if you select the “Other” checkbox.
- Enter zero on Part A, line 1, if claiming only a carryforward.
- Do not include employer-provided retirement, medical or healthcare benefits, or expense reimbursements in compensation.
- Do not include books, room and board, or fees other than program-specific course fees in tuition.
- Complete the tuition reimbursement section only if the employee participated in a qualified educational program.
Questions people ask
How much is the employee credit?
The maximum is $5,000 per year. The text allows a credit for the first year a taxpayer becomes a qualified employee and the next four years in which they qualify, subject to the rule that no new credits may be issued or earned after December 31, 2026.
Can unused credits be carried forward?
Employees with income tax liability below $5,000 may carry unused credit forward for up to four additional tax years following the year the credit is first allowed. Employer compensation and tuition reimbursement credits cannot be carried forward. These credits are nonrefundable.
How much is the employer compensation credit?
It is 10% of compensation paid, limited to $15,000 annually for each qualified employee. It applies to the first five years of employment and cannot be claimed after the fifth year, subject to the cutoff for earning new credits.
When must an employee graduate for the tuition reimbursement credit?
The employee must graduate from a qualified program within one year before or after starting employment with the qualified employer. The tuition reimbursement credit may be claimed through the employee's fourth year of employment, subject to the cutoff for earning new credits.