Venture and Local Seed Capital Credit K-55

Local Seed Capital Pool Credit

INCOME TAXPAYER-Effective for all taxable years beginning after December 31, 1986.

A local seed capital pool is money invested in a fund established to provide funding for small businesses to develop a:

prototype product or process; or,
marketing study to determine the feasibility of a new product or process; or,
business plan for the development and production of a new product or process.

A taxpayer who invests in a certified local seed capital pool will be allowed a credit against their income tax liability.

Qualifications

A local seed capital pool must be certified by the Secretary of Commerce. For a list of certified local seed capital pools you may contact the Kansas Department of Commerce at (785) 296-5298.

Credit Amount

The credit is 25% of the cash investment in the local seed capital pool.

The amount of credit which exceeds the tax liability in any one taxable year may be carried forward until the total amount of credit is used.

Venture Capital Credit

INCOME AND PRIVILEGE TAXPAYERS-Effective for all taxable years beginning after December 31, 1985.

Certified Kansas Venture Capital Companies

INCOME TAXPAYERS-Effective for all taxable years beginning after December 31, 1985 and before January 1, 1998.

A Kansas venture capital company is any for-profit partnership or corporation that has as its primary business activity the investment of funds in return for equity in ventures that are in need of capital for expansion, new product development or similar business purposes.

Kansas provides an income tax credit for those taxpayers who invest in stock issued by:

Kansas Venture Capital, Inc.;
a certified Kansas venture capital company; or
in the technology-based venture capital company, Sunflower Technology Venture, LP.

Privilege taxpayers who invest in stock issued by Kansas Venture Capital, Inc are allowed a credit against their privilege tax liability.

Qualifications

A venture capital company must be certified by the Kansas Secretary of Commerce. For a list of certified venture capital companies you may contact the Kansas Department of Commerce at (785) 296-5298.

Credit Amount

The credit is 25% of the total amount of cash investment in the stock. Any unused credit may be carried forward until the total amount is used.

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