K.S.A. 79-32,211 provides a tax credit against the income, privilege or premium tax 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. The amount of the credit is 25% of qualified expenditures when the total amount of the expenditures equals $5,000 or more.
For tax years beginning after December 31, 2006, the amount of the credit is 30% of qualified expenditures incurred and paid in the restoration and preservation of a qualified historic structure which is exempt from federal income taxation pursuant to section 501(c)(3) of the IRC and which is not income producing pursuant to a qualified rehabilitation plan by a qualified taxpayer. The total amount of such expenditures must equal $5,000 or more in order to claim the credit.
Partners, shareholders and members of a pass-through entity will claim this credit in the same manner as they account for their proportionate shares of the income or loss of that entity.
If the tax credit exceeds the income, privilege or premium 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(s) 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.
Tax credits allowed and earned may be sold, assigned or otherwise transferred to a taxpayer (assignee) who may use the acquired credit against its tax liability for either the tax year the qualified rehabilitation plan was first placed in service or the year in which the credit was acquired. Unused credit amounts claimed by an assignee may be carried forward for up to 5 years, except that all such amounts shall be claimed within 10 years following the tax year in which the qualified rehabilitation plan was first placed into service. The amount received by the assignor of the tax credit shall be taxable as income of the assignor. The excess of the value of the credit over the amount paid by the assignee for the credit shall be taxable as income to the assignee.
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.
A qualified historic structure is 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. A qualified rehabilitation plan is a project that has been approved by the Cultural Resources Division of the Kansas State Historical Society, or by a local government certified by the division to so approve. The plan must be consistent with the standards and guidelines for rehabilitation of historical buildings as adopted by the federal secretary of interior.
Qualified expenditures are costs and expenses incurred by a qualified taxpayer in the restoration and preservation of the qualified historic structure according to the approved plan which are defined as a qualified rehabilitation expenditure by section 47(c)(2) of the federal internal revenue code.