K-55: Venture and Local Seed Capital Credit Schedule (Revision 2019-08)

Who files this form

Use Schedule K-55 to claim the credit for cash invested in stock issued by Kansas Venture Capital, Inc., or to claim an available unused credit carried forward.

For tax year 2013 and later, new credits are available only to:

• C corporations subject to Kansas corporate income tax.
• Taxpayers subject to the privilege tax measured by the net income of financial institutions.
• Insurance companies subject to the premium tax and privilege fees imposed under K.S.A. 40-252.

New credits are not available to individuals, partnerships, S corporations, limited liability companies, or other pass-through entities. Taxpayers with unused credits earned before tax year 2013 may continue to claim them, subject to the limitations and requirements in place when the credit was earned.

What you'll need

Have the following information ready to complete K-55:

• Your taxable year, taxpayer name as shown on your return, and Social Security number or EIN.
• If applicable, the name and EIN of the partnership, S corporation, LLC, or LLP.
• Investment or transfer dates and the name of the Kansas venture capital company.
• The total cash investment made during the tax year.
• Your Kansas tax liability and other credits already claimed.
• Prior-year K-55 schedules showing any available carryforward. Enclose or fax copies of those schedules.

If the credit was transferred from an investor, the form asks for the original investor’s name and address.

How to file

Complete the requested information at the top of K-55, then complete the applicable credit calculations in Parts A, B, and C.

Enter the total credit from line 11 on the appropriate line of Form K-40, K-120, or K-130. If claiming a carryforward, enclose or fax copies of the prior-year K-55 schedules.

The text does not give a mailing address or e-filing procedure for submitting K-55. For help completing the schedule, contact the Kansas Department of Revenue at 785-368-8222. The taxpayer assistance fax number is 785-291-3614.

Common mistakes

• Leaving requested information at the top of K-55 incomplete.
• Making an entry on line 2. The instructions say not to enter anything on this line; the 25% rate is already printed.
• Claiming a carryforward without enclosing or faxing copies of the prior-year K-55 schedules.
• Entering a negative amount on line 10. The carryforward to the next year cannot be less than zero.
• Failing to check the transfer box and provide the original investor’s name and address when the credit results from a transfer.

Questions people ask

How much is the credit?

The credit is 25% of the total cash investment in stock issued by Kansas Venture Capital, Inc. The amount claimable for the year is limited by the tax liability calculations on K-55.

Can I carry unused credit forward?

Yes. Credit that exceeds the tax liability in a taxable year may be carried forward until used. Credits earned before tax year 2013 remain subject to the limitations and requirements in place when they were earned.

Can an individual claim a new credit?

No. New credits are not available to individuals for tax year 2013 and later. An individual with an available unused credit earned before 2013 may continue to claim it under the rules that applied when it was earned.

How do I calculate the total credit claimed for the year?

On line 11, enter the smaller of the sum of lines 5 and 7 or the amount on line 4. Transfer that amount to the appropriate line of Form K-40, K-120, or K-130.

Official sources

• https://www.ksrevenue.gov/pdf/k-55.pdf