Credits Funds Small Business Growth & Reduces Tax Liability
Project Open, Salina’s Entrepreneurship program, has been awarded a second round of Kansas State Income Tax Credits which must be placed by December 31st. The credits are purchased by individuals or corporations that use them to offset the Kansas State income tax that they would normally pay.
Dennis Lauver, President and CEO of the Salina Area Chamber of Commerce said “we invite any business or individual to contact us to learn how to lower their tax liability while helping business development for small businesses in Salina.” Lauver specifically thanked some businesses that purchased tax credits for the second year in a row to reduce their liability while also helping the Project Open initiative. “We’ve had people buying as much as $50,000 and others purchasing $1,000. Folks can invest as little as $250 in tax credits to reduce their taxes while helping Salina”
“It is encouraging that people have a strong interest in assisting the growth of entrepreneurs and small businesses in Salina and we appreciate them participating in this program. It also makes good business sense to be able to pay your state income tax and support a program that helps local businesses to succeed” said Larry Fief, 2010 Chamber Board Chair.
The Tax Credit program is part of a state wide effort to raise funds for business support programs. Salina became an E-Community in 2009 and was awarded tax credits again for 2010.
Donors receive a 75% state income tax credit for their donation. A tax credit is a dollar for dollar credit against state income tax liability. Donors are also eligible to receive a federal and state income tax deduction and should consult with their individual tax specialist to determine the amount of any deductions. A K-31 form is required with the tax form and will be sent out by NetWork Kansas upon receipt of the donation.
The minimum tax credit purchase per year is $187.50 which translates into a cash donation of $250. The maximum allowable credit per year is $50,000 which translates into an approximate donation of $66,667. If the amount of the tax credit exceeds the contributor’s liability in the taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is applied.
Businesses and individuals who wish to participate in this program must complete their donation by December 31 by contacting Larry Powell at the Chamber office. Calling 785-827-9301 or emailing lpowell@salinakansas.orgis the best way to learn more.