Form K-56 - Kansas Child Day Care Assistance Credit (employers)

K.S.A. 79-32,190 provides an income or privilege tax credit if, during the taxable year, the taxpayer:

• pays for child day care services for its employees, OR • locates child day care services for its employees, OR

• provides facilities and necessary equipment for child day care services to its employees.

For tax year 2013, and all tax years thereafter, new credits shall be available to only corporations that are subject to the Kansas corporate income tax (i.e., C corporations). New credits are not available to individuals, partnerships, S corporations, limited liability companies, and other passthrough entities.

In order to receive a credit or refund, the child day care facility or provider must be licensed or registered pursuant to Kansas law.

The amount of credit is based on the amount spent by the taxpayer LESS any contribution from its employees or any other source(s). Any approved credit that exceeds the taxpayer’s tax liability for the tax year will be refunded. The amount of allowable credit is as follows:

Taxpayer Provides Facilities and Necessary Equipment for Child Day Care Services (Initial Year). Fifty percent (50%) of the net amount spent by the taxpayer or by the taxpayer in conjunction with other taxpayers during the initial tax year in which a facility providing child day care services is established and operated by those taxpayers in Kansas for use primarily by the dependent children of the taxpayer’s employees. The amount of credit in the initial year may not exceed $45,000 for any taxpayer. (Complete lines 6 through 12.)

Taxpayer Pays For OR Locates Child Day Care Services. Thirty percent (30%) of the net amount spent by the taxpayer during the tax year for child day care services purchased in Kansas to provide care for the dependent children of the taxpayer’s employees or for the service of locating child day care services for the taxpayer’s employees. The credit may not exceed $30,000 for any taxpayer during any taxable year. (Complete lines 13 through 19.)

Taxpayer Provides THE Facility And Necessary Equipment For Child Day Care Services (Subsequent Years). Thirty percent (30%) of the net amount spent by the taxpayer or by the taxpayer in conjunction with other taxpayers during the years subsequent to the initial year in which a facility providing child day care services was established and operated by those taxpayers in Kansas for use primarily by the dependent children of the taxpayer’s employees.

The credit in the years subsequent to the initial year may not exceed $30,000 for any taxpayer during any taxable year.

K-56 Kansas Child Day Care Assistance Credit Rev. 8-20 (ksrevenue.gov)