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
- Kansas Department of Revenue — Official program information (ksrevenue.gov)
Related programs
HPIP Investment Tax Credit
10% of qualified facility investment above $50
Qualifying manufacturers paying above-average wages can earn a strong confirm eligible property, location and taxpayer type.
HPIP Training and Education Credit
2% of payroll, capped at $50,000 or tax liability
HPIP-certified firms with substantial training spending can claim an additional credit.
Short Line Railroad Tax Credit
Credit based on qualified short-line track maintenance
Potentially relevant where a forest-products business owns qualifying short-line track or receives an eligible assigned credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.