Housing Investor Credit
Income and Privilege taxpayers – Effective for tax year 2022 and all tax years thereafter. A tax credit shall be allowed for any taxpayer that makes a cash investment in a qualified housing project.
Qualifications
A firm must be qualified by the Director of Housing to be eligible for the investment tax credit. To become certified, a business must meet the following requirements:
- A qualified investor for a cash investment in a qualified housing project that has been approved and issued a tax credit by the Director of Housing;
- A project builder or developer for a cash investment in a qualified housing project of the project builder or developer that has been approved and issued a tax credit by the Director of Housing.
For information on the certification process, email MIH@kshousingcorp.org
Credit Amount
For tax years 2022 and all tax years thereafter, the credit will be 100% of the cash investment to a qualified housing project, and will be allowed as follows:
- For qualified projects located in a county with a population of not more than 8,000, in an amount not to exceed $35,000 per residential unit.
- For qualified housing projects located in a county with a population of more than 8,000 but not more than 25,000, in an amount not to exceed $32,000 per residential unit.
- For all other qualified housing projects, in an amount not to exceed $30,000.
Limitation of Credit
Of the aggregate amount of the tax credits issued in one tax year, the director shall allocate as follows:
- Not less than $2,500,000 in tax credits for qualified housing projects located in counties with a population of not more than 8,000.
- Not less than $2,500,000 in tax credits for qualified housing projects in counties with a population of more than 8,000 but not more than 25,000.
- Up to $8,00,000 in tax credits for qualified housing projects located in counties with a population of more than 25,000 but not more than 75,000.
Transfer of Credit
Any qualified investor who receives a tax credit shall be deemed to acquire an interest in the nature of a transferable credit limited to the amount of the credit issued to the qualified investor. All or a portion of such credit may be transferred by the qualified investor or any subsequent transferee to one or more persons whether or not such transferee is then a qualified investor and be claimed by the transferee as a credit against the transferee’s Kansas tax liability in the same manner as the transferor beginning in the year the credit is transferred. There shall be no limit on the number of times a credit or any portion thereof can be transferred.
Procedures to Claim the Credit
You may download Schedule K-27 to claim the Housing Investor Credit. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voicemail system at 785-296-4937 to request Schedule K-27. 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.
Definitions
Qualified Housing project
A project within a city or county for the construction of single-family residential dwellings, including, but not limited to, manufactured housing or modular housing, or multi-family residential dwellings or buildings, that is eligible for designation by the director as a project for the purposes of the tax credit allowed under this act. "Qualified housing project" does not include a project eligible for income or other tax credits designated for low-income housing under state or federal law, including, but not limited to, the low-income housing tax credit pursuant to 26 U.S.C. § 42, or a project participating in tenant-based or project-based programs pursuant to section 8 of the United States housing act of 1937, 42 U.S.C. § 1437f.
Qualified Investor
An investor that has made a cash investment in a qualified housing project and is eligible for a tax credit under this act. A "qualified investor" includes a natural person, a business or a bank or other financial institution or association and the project builder or developer.
Cash Investment
Cash investment means, as approved by the director, money or money equivalent in consideration for qualified securities.
Kansas Investor
Kansas investor means an individual who is a resident of Kansas, or any business entity domiciled in Kansas, or any corporation, even if a wholly owned subsidiary of a foreign corporation, that does business primarily in Kansas, or a bank or other financial institution or association chartered or incorporated under the laws of Kansas that does business primarily in Kansas or conducts substantially all of its business activities in Kansas.