The Kansas High Performance Incentive Program (HPIP) Credit, reported on Schedule K-59, is a state tax credit available to qualified businesses in Kansas that make investments in training, education, or capital improvements. This credit is governed by Kansas statutes K.S.A. 74-50,132 (Training and Education Credit) and K.S.A. 79-32,160a(e) (Investment Tax Credit). To claim the credit, businesses must first obtain certification from the Kansas Department of Commerce (KDOC), which must be maintained with their tax records.
Eligible Credits
- Training and Education Credit: For firms investing in employee training and education programs.
- Investment Tax Credit: For qualified investments in capital improvements or equipment.
Reporting Requirements
Schedule K-59 includes two sections: an investment schedule and a carry-forward schedule. Businesses must complete the appropriate sections based on their qualifying activities. The form must be attached to the Kansas state tax return to claim the credit.
How to Claim Schedule K-59
- Complete Schedule K-59 – High Performance Incentive Program (HPIP) Credits and attach it to the applicable Kansas tax return. Enter the required HPIP certification information, qualifying credit amounts, and any applicable carryforward information according to the Schedule K-59 instructions.
- Taxpayers must retain the HPIP certification documentation issued by the Kansas Department of Commerce and supporting records related to the qualifying training, education, or investment activities. The Kansas Department of Revenue may request documentation to verify the credit claimed.
Source:
Schedule K-59 - Kansas High Performance Incentive Program Credit
Disclaimer: Always verify details with the official Kansas Department of Revenue forms and instructions. This information is for general guidance and may not apply to all situations. For complex cases, consult a CPA or tax attorney.