K-34: Business and Job Development Credit Schedule (Revision 2019-08)

Who files this form

Schedule K-34 is for Kansas taxpayers claiming the Business and Job Development Credit against income tax or privilege tax. The credit is tied to investment in a qualified business facility and hiring qualified employees as a direct result of that investment.

Availability restriction: The printed instructions state that the credit is no longer available in metro counties effective with tax year 2011, and is not available in metro and non-metro counties beginning in tax year 2012. They also provide procedures for claiming existing manufacturer or nonmanufacturer carryforward credits and recomputing existing retail or service credits.

Complete and submit Part B for every credit claimed. Maintain Parts C and D for each facility throughout the life of the credit.

What you'll need

Have these records and attachments ready, as applicable:

• Taxpayer name and Social Security number or EIN. Partners, shareholders and members also need the entity's name and EIN.
• Facility address or legal description, city, county, NAICS code, and dates operations and investment use began.
• A description of the investment made during the tax year and how it directly relates to hiring the required additional employees. Attach this for line 7.
• Monthly employee counts and investment values for Parts C and D, including base-year information where required.
• Kansas payroll and total Kansas employment information.
• Prior-year K-34 information for any carryforward claim.
• A schedule showing how qualified business facility income was determined for line 16.
• Ownership information and schedules for shareholder or partner claims.

How to file

File Schedule K-34 with the tax return. The printed instructions say to file it for the tax year the investment became available for use. When establishing a credit for the first time, file it with the original or amended return for the year qualified.

• Complete Parts C and D before Part B.
• Use the Part B column that matches the business activity selected in Part A, line 4.
• Complete a separate K-34 for each type of credit if claiming both a retail or service credit and a manufacturer or nonmanufacturer credit.
• If electing to defer the credit, still enclose K-34 with the return for the year the qualified investment became available for use.

The supplied text does not give a mailing address or e-file instructions.

Common mistakes

• Using a post office box for the facility location. Line 2 requires a street address or legal description, not a post office box.
• Using payroll reporting lines to calculate the credit. Line 8b and Payroll Information lines A and B are for reporting only.
• Skipping the worksheets. Complete Parts C and D before Part B.
• Rounding average employees up. Line 38 requires rounding down to the next whole number.
• Failing to maintain enough qualified employees. The instructions warn that the credit is forfeited if the adjusted average falls below the required minimum.
• Entering a negative carryforward. Carryforward amounts on lines 15 and 24 cannot be less than zero.

Questions people ask

Is this credit refundable?

No. The printed instructions describe it as a nonrefundable credit applied against income tax or privilege tax.

Is there a minimum investment amount?

The instructions state that there is no minimum investment amount, but some investment must have been made. They also require qualified hiring directly resulting from that investment and state availability restrictions beginning in tax years 2011 and 2012.

Can I defer the credit?

The schedule allows a deferral of no more than three years. Employees and investment must be maintained during the deferral, and Parts C and D must be submitted for each deferred year.

Can I report a credit when there is no new investment?

Yes. The instructions provide a “No new investment” box for recomputing an existing retail or service credit or claiming a manufacturer or nonmanufacturer carryforward credit.

Official sources

• https://www.ksrevenue.gov/pdf/k-34.pdf