K-59: High Performance Incentive Program Credit Schedule (Revision 2025-08)

Who files this form

Schedule K-59 is used to claim Kansas High Performance Incentive Program (HPIP) training and education credits and investment credits. Certification from the Kansas Department of Commerce (KDOC) is the initial requirement for either credit.

• A qualified firm that invests in employee training and education and pays higher-than-average wages may qualify for the training and education credit.
• A qualified firm investing in a qualified business facility may qualify for the investment credit. Complete a separate K-59 for each facility in the initial year and any year a carryforward is needed.
• Complete a separate K-59 for each credit received by transfer, both in its initial year and any necessary carryforward year.

Qualified firms must meet the business classification or headquarters requirements described in the form, along with additional qualifications. Contact KDOC for information about qualifying.

What you'll need

Have the following information and records available, as applicable:

• Your taxpayer name, Social Security number or EIN, and tax-year dates. Partners, shareholders and members also need the name and EIN of the entity that earned the credit.
• Your KDOC certification or recertification number and covered period. Keep the certification with your records.
• For transferred credits, the credit certificate, credit amount and number of carryforward years remaining when acquired.
• For training credits, your HPIP eligibility form or certification letter, qualified cash training expenses, and payroll amounts corresponding to Form K-CNS 100, the Quarterly Wage Report and Unemployment Tax Return.
• For investment credits, the facility address, capital investment project form submitted to KDOC, monthly investment values, property costs and rental amounts, and applicable base-year figures.
• Prior-year credit and carryforward amounts, current Kansas tax liability, and the jobs, payroll, revenue and sales information requested in Part D.

Do not send enclosures with the credit schedule. The Department of Revenue may request additional information later.

How to file

Complete the parts of K-59 that apply to your credit. Report the training and education credit used from line 9a and the investment credit used from line 15 on the appropriate lines of Form K-40, K-41, K-120 or K-130.

• Credit recipients: The transferee instructions specify Part A, lines 2, 2b and 2c; Part C, lines 10, 13, 13a and 13c through 16; and Part E.
• Credit transferors: Complete the entire form to establish the credit and show the transfer.
• Carryforward claims: Submit the first page of K-59 with the taxpayer information in the header, lines 10, 13, 14, 15 and 16, and Parts D and E completed. To obtain recertification, complete the HPIP Tax Credit Carry-forward Application with KDOC.

The supplied text does not specify a mailing or e-filing method or a filing address. The printed addresses are for taxpayer assistance.

Common mistakes

• Sending extra enclosures: Do not send enclosures with K-59. Keep your KDOC certification in your records.
• Including excluded training expenses: Do not include spending used to match the Kansas Industrial Retraining (KIR) program on line 3.
• Applying credits in the wrong order: Apply the training and education credit before any other credits. The amount used cannot exceed your tax liability.
• Claiming two credits for the same investment: If you claim the K-59 investment credit on line 15, you may not claim a business and job development credit on Schedule K-34 using the same facility investment.
• Reporting cumulative figures in Part D: For carryforward-only filings, report the current tax period's figures, not totals since the credit began. The information must be for the entity claiming the credit.
• Entering a negative carryforward: Do not enter an amount below zero on line 16.

Questions people ask

How much is the training and education credit?

The credit is the amount of qualifying training and education spending above 2% of wages, limited to $50,000. Partners, shareholders and members apply their proportionate share. The credit used cannot exceed tax liability.

Can I carry unused credits forward?

The training and education credit has no carryforward provision. The investment credit may be carried forward for the next 16 tax years. To claim a remaining carryforward, the taxpayer must be recertified for the majority of the tax year in which it is claimed. Years when you do not claim the carryforward still count toward the 16-year limit.

What if my training credit certification overlaps two tax years?

If the HPIP certification period overlaps two tax years, you may choose which of those tax years to claim the training and education credit.

When must I claim a transferred investment credit?

Claim it in the tax year the credit was transferred. The form's example says a credit transferred on March 5, 2024 must be claimed on the tax return that includes March 5, 2024.

Where can I get help?

For HPIP qualification questions, contact the Kansas Department of Commerce at 785-296-5298 or kansascommerce.gov. For help completing K-59, contact the Kansas Department of Revenue at 785-358-8222 or ksrevenue.gov.

Official sources

• https://www.ksrevenue.gov/pdf/k-59.pdf