Historic Preservation Credit

INCOME TAXPAYERS-Effective for all taxable years beginning after Dec. 31, 2000.

PRIVILEGE TAXPAYERS-Effective for all taxable years beginning after Dec. 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 Historical Society
6425 SW 6th
Topeka, KS 66615-1099
785-272-8681 ext. 213

Credit Amount

The credit is 25 percent of qualified expenditures when the total amount of the expenditures equals $5,000 or more.

For taxable years commencing after Dec. 31, 2006, the credit is 30 percent 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 Dec. 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 percent 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.

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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.

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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.

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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.

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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.

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