Research Tax Credit

In order to encourage research and development activities within the state, taxpayers who invest in research and development are entitled to tax credits against Kansas income tax liability (K.S.A. 79-32182).


Qualified research expenditures are defined in federal internal revenue code of 1986, amended.


Tax credit equals 6.5% of the amount by which a company’s investment in R&D that exceeds the average expenditure of the previous three year period. 25% of the allowable annual credit may be claimed in any one year. Unused credits may be carried forward indefinitely.

Cannot be used if taxpayer elects Expensing Deduction.


Contact the State Department of Revenue at 785-368-8222.