Historic Preservation Credit
HISTORIC PRESERVATION CREDIT
INCOME TAXPAYERS-Effective for all taxable years beginning after December 31, 2000.
PRIVILEGE TAXPAYERS-Effective for all taxable years beginning after December 31, 2001.
An income tax credit is available for certain historic preservation project expenditures.
QUALIFICATIONS
The credit is available to a qualified taxpayer
that makes qualified expenditures to restore or
preserve a qualified historic structure according
to a qualified rehabilitation plan.
For information about the federal and state rehabilitation credits, contact the:
Kansas State Historical Society
6425 SW 6th
Topeka, KS 66615-1099
(785) 272-8681 ext. 213
CREDIT AMOUNT
The credit is 25% of qualified expenditures when the total amount
of the expenditures equals $5,000 or more.
For taxable years commencing after December 31, 2006, the credit is 30% of qualified expenditures incurred of the restoration and preservation of a qualified historic structure which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code and which is not income producing pursuant to a qualified rehabilitation plan by a qualified taxpayer if the total amount of such expenditures equals $5,000 or more.
TRANSFER OF CREDIT
For taxable years beginning after December 31, 2001, any person
(assignor) may sell, assign, convey or transfer tax credits earned
in the restoration and preservation of a qualified historic structure.
The taxpayer acquiring the credit (assignee) may use the amount
of the acquired credit to offset up to 100% of its tax liability
for either the taxable year in which the qualified rehabilitation
plan was first placed into service or the taxable year in which
the acquisition was made. Unused credit amounts claimed by the assignee
may be carried forward for up to five years, except that all amounts
shall be claimed within 10 years following the tax year in which
the qualified rehabilitation plan was first placed into service.
LIMITATION OF CREDIT
The credit is limited to the taxpayer’s tax liability. If
the tax credit exceeds the tax liability for the year, in which
the qualified rehabilitation plan was placed in service, the excess
credit may be carried forward to the next succeeding year or years
until the total credit has been used except that no credit may be
carried over for deduction after the 10th taxable year succeeding
the year in which the qualified rehabilitation plan was placed in
service.
PROCEDURES TO CLAIM THE CREDIT
You may download Schedule K-35
to claim the historic preservation credit. This schedule should
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-35. 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.
HISTORIC PRESERVATION DEFINITIONS
QUALIFIED
TAXPAYER
A qualified taxpayer is the owner of the qualified historic structure
or any other person who may qualify for the federal rehabilitation
credit allowed by section 47 of the federal internal revenue code.
QUALIFIED
EXPENDITURES
Qualified expenditures mean the costs and expenses incurred by a
qualified taxpayer in the restoration and preservation of a qualified
historic structure pursuant to a qualified rehabilitation plan which
are defined as a qualified rehabilitation expenditure by section
47(c)(2) of the federal internal revenue code.
QUALIFIED
HISTORIC STRUCTURE
Qualified historic structure means any building, whether or not
income producing, which is
- defined as a certified historic structure by section 47(c)(3) of the federal internal revenue code,
- is individually listed on the register of Kansas historic places, or
- is located and contributes to a district listed on the register of Kansas historic places.
QUALIFIED
REHABILITATION PLAN
Qualified rehabilitation plan means a project which is approved
by the cultural resources division of the state historical society,
or by a local government certified by the division to so approve.
The plan must be consistent with the standards for rehabilitation
and guidelines for rehabilitation of historic buildings as adopted
by the federal secretary of interior and in effect as of July 1,
2001.