K-53: Research and Development Credit Schedule (Revision 2024-07)
Kansas · Kansas DOR · Used for tax years 2024, 2025, 2026
Kansas Schedule K-53 calculates the research and development credit for qualifying activities conducted in Kansas. It reports research and development expenditures, the credit claimed for the tax year, and unused credits carried forward, including credits from prior years.
Who files this form
Use Schedule K-53 to claim the Kansas research and development credit for qualifying research and development activities conducted within Kansas.
For tax year 2023 and later, new credits are available to individuals, partnerships, S corporations, LLCs, other pass-through entities and C corporations.
Qualifying expenditures must be allowable deductions under the federal Internal Revenue Code provisions described in the schedule. They do not include expenditures of money made available to the taxpayer under federal or state law.
K-53 also includes sections for taxpayers transferring or receiving a credit and for claiming unused credits from prior years.
What you'll need
- Your taxpayer name and Social Security number or EIN. Partners or shareholders claiming the credit also need the entity’s name and EIN.
- A description of the research and development activity and the Kansas location address, including city and county. Attach additional pages for multiple locations or a longer description.
- Expenditure amounts for the current tax year and the two preceding tax years. Current-year expenses are separated into machinery and equipment, payroll, and other expenses.
- An itemized expenditure schedule supporting lines 1, 2a and 2b. Keep this schedule because the Kansas Department of Revenue may request it.
- Copies of prior-year K-53 schedules if claiming carryforward credits, along with amounts and years previously claimed.
- Your Kansas tax liability after other credits, as requested on the form.
- For a credit transfer, the recipient’s name and EIN and a completed Form K-260 to document the transfer.
How to file
Enter your taxpayer information, describe the research and development activity, and list the Kansas locations where it is conducted.
Complete the applicable credit calculations and carryforward sections. Enter the amount from line 20 on the appropriate line of Form K-40, K-41 or K-120.
If transferring a credit: Complete Part A and provide K-53 to the recipient. If you have prior-year carryforwards remaining, also complete Parts D and E. Complete and submit Form K-260 to the Department to document the transfer.
If receiving a transferred credit: Complete Parts B, C and E, plus Part D if you have prior-year carryforwards remaining. Submit K-53 with your applicable income tax return.
The supplied text does not give mail or e-file directions or a filing address. The address printed on the schedule is for taxpayer assistance.
Common mistakes
- Not keeping expense details: Keep an itemized schedule supporting lines 1, 2a and 2b. The Department may request it.
- Entering a negative amount on line 5: Enter zero if current-year expenditures on line 1 are less than or equal to the average on line 4.
- Missing transfer information: Check the transferred-credit box and provide the recipient’s name and EIN. Form K-260 must also be completed and submitted to document the transfer.
- Transferring only part of a credit or transferring it again: Only the full credit may be transferred, and it may be transferred only once.
- Leaving out additional locations or carryforward columns: List additional Kansas research locations on extra pages. Enclose a separate schedule if Part D needs more columns.
Questions people ask
How is the credit calculated?
Add qualifying expenditures for the current tax year and the two preceding tax years, then divide by three. Subtract that average from current-year expenditures, using zero if the result is not positive. The total credit is 10% of that amount. Line 7 limits the annual amount from that credit to 25% of the total credit.
Can I carry unused credit forward?
Yes. Remaining unused credit may be carried forward until the total credit is used. Part D calculates the available credit from prior years using the remaining balance and the annual limit from each original K-53.
Can I transfer the credit to someone else?
New credits earned in tax year 2023 and later may be transferred to any person. Only the full credit may be transferred, and only once. Form K-260 must be completed and submitted to the Department to document the transfer.
Is a transferred credit refundable?
No. The recipient may claim it against Kansas income tax liability in the tax year of the transfer. Unused credit may be carried forward, subject to the limitations and requirements in place when the credit was earned.
Where can I get help with K-53?
Contact the Kansas Department of Revenue’s Taxpayer Assistance Center at 785-368-8222. Additional copies of the schedule and other tax forms are available at ksrevenue.gov.