The K-59 Schedule has been redesigned for 2006 to provide for an investment schedule and a carry forward schedule. The High Performance Incentive Program (HPIP) provides for two types of credits:
- Training and Education Credit (K.S.A 74-50, 132): and
- Investment Tax Credit (K.S.A. 79-32, 160a(e)).
Certification from the Kansas Department of Commerce is the initial requirement for either of the credits and must be maintained with your records.
Training and Education Credit A qualified firm that invests in the training and education of its employees and pays higher than average wages is eligible to receive a tax credt. The credit is the amount of training and education expenditures that exceed 2% of the wages, limited to $50,000. The credit must be used in the tax year it is earned. There is no carry-forward provision for this credit.
Investment Tax Credit A qualified firm may be eligible to receive a 10% investment tax credit for qualified business facility (QBF) investments in excess of $50,000 in a QBF. This credit may be carried forward for the next 10 years as long as the firm is recertified in the tax year the carry-forward is used. Schedule K-59 must be completed for each QBF in the initial year and, if necessary, for any carry-forward for each year for each location.
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