National Guard & Reserve Employer Credit
INCOME TAXPAYER-Effective for all taxable years commencing after December 31, 2005 and prior to January 1, 2009.
An income tax credit shall be allowed for employing a member of the Kansas army and air national guard or a member of a Kansas unit of the reserved forces of the United States who was federally activated and deployed on or after August 7, 1990.
QUALIFICATIONS
In order to qualify for this credit:
- An employer must employ a member of the Kansas army and air national guard or a member of a Kansas unit of the reserved forces of the United States who was federally activated and deployed on or after August 7, 1990, and
- An employer must NOT have employed the member prior to activation and deployment, and
- The member must have been unemployed at the time the employer (who is claiming the credit) employed the member.
CREDIT AMOUNT
The credit is 25% of the amount paid as salary or compensation, not to exceed $7,000 for each member employed. The credit is further limited to salary or compensation paid for one year for each member employed.
LIMITATION OF CREDIT
If the amount of the credit exceeds the employer’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used.
PROCEDURES TO CLAIM THE CREDIT
You may download Schedule K-74 to claim the national guard & reserve employer credit. This schedule must be completed and submitted with the income tax return. You may also call the Department of Revenue voice mail system at (785) 296-4937 to request Schedule K-74. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.