By Ashleigh M. Paige, Esq.
The Kansas Department of Revenue has adopted new regulations, Kan. Admin. Regs. §§ 92-12-150 and 92-12-151, related to the workforce retention incentive income tax credit, effective March 22, 2024.
Workforce retention incentive credit. L. 2023, S123 (c. 64), effective 05/04/2023, allows personal income taxpayers to claim a Kansas workforce retention incentive credit if the individual has received a Kansas adult learner grant (see State Tax Update, 04/25/2023).
Definitions for determining qualification. The regulations provide definitions to be used to determine if individuals have fulfilled the requirements to qualify for the credit.
“Commenced service as a military servicemember” means entered into a service commitment to any branch of the U.S. armed services, U.S. military reserves, or national guard of any state at any time after receiving an adult learner grant award.
“Currently employed in the state of Kansas” means employed in Kansas for any part of the taxable year for which the credit is claimed.
“Currently reside in Kansas” means reside in Kansas for any part of the taxable year for which the credit is claimed.
“Employed in the state of Kansas” means: (1) having any type of employment, including full-time salaried or hourly employment, part-time salaried or hourly employment for any number of hours, or self-employment, that is physically performed in Kansas or that is performed for an employer that is physically located in Kansas, or for which that individual is issued a W-2, 1099, or other wage and tax statement showing Kansas withholding or estimated tax to Kansas; or (2) serving in the armed forces of the United States, or serving in support of those armed forces, in an area designated by the President of the United States by executive order as a “combat zone” as defined under 26 U.S.C. § 112 at any time during the period designated by the President by executive order as the period of combatant activities in that zone for the purposes of that section.
Multiple credits. Individuals will not be eligible for more than one credit per adult learner grant eligible program successfully completed by a degree being awarded.
