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.
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. Click here for more information on qualifying vs. non-qualifying expenditures.
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
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.