Individual Development Account Credit

INCOME TAXPAYER-Effective for all taxable years beginning after Dec. 31, 2004.

Beginning in tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.

An income tax credit shall be allowed for any program contributor that contributed to an individual development account reserve fund.

Qualifications

A community-based organization shall be approved by the Department of Commerce to implement the individual development account reserve fund.

Kansas Department of Commerce
1000 SW Jackson, Suite 100
Topeka, KS 66612-1354
785-296-3485
http://www.kansascommerce.com/

Credit Amount

For taxable years commencing after Dec. 31, 2010 the credit is 75 percent of the amount contributed to an individual development account reserve fund.

Individual Development Account Refund

If the credit allowed exceeds the program contributor’s tax liability in any one taxable year, the remaining portion of the credit shall be refunded.

Limitation of Credit

No credit shall be allowed for any contribution made by a program contributor to individual development account reserve fund which also qualified for the community service contribution credit with the same contribution.

Procedures to Claim the Credit

You may download Schedule K-68 to claim the Individual Development Account 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-68. 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.


Program Contributor

A person or entity who makes a contribution to an individual development account reserve fund.

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Individual Development Account Reserve Fund

A fund created by an approved community-based organization for the purposes of funding the costs incurred in the administration of the program by the financial institutions and the community-based organizations and for providing matching funds for moneys in individual development accounts.

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Community-based Organization

Any religious or charitable association or tribal entity that is approved by the Department of Commerce to implement the individual development account reserve fund.

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