Kansas · research and development · KS-RD-001
Research and Development Credit
Publication revised September 24, 2026. Sourcebook page 117.
Credit amount / calculation
10% of the difference between current research and development expenses and the average of the current and prior two years; credits generated 2023+ may be transferred when the taxpayer lacks current liability.
Business fit and eligible activity
Qualified Kansas research earns a relatively strong incremental credit. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Illustrative business benefit
A hardwood mill spends $320,000 on a documented project to improve recovery from low-grade logs using scanner changes, controlled test runs, software adjustments, and revised sawing patterns. Assume $200,000 is ultimately treated as the relevant qualified or excess research base. At 10%, the state credit would be about $20,000 before program caps and tax-liability limits. The company would need records showing the uncertainty, alternatives tested, people involved, and results - not simply a year-end estimate of 'engineering time.'
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
- Official source (ksrevenue.gov)
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