Kansas State Tax Credit
-
Requirements
-
The Kansas State Tax Credit is equal to 25% of qualifying
expenses incurred during a qualified project on a qualified
building.
-
Buildings must be qualified historic structures. Qualified buildings
are those that have been listed on the National Register of Historic
Places, the Register of Historic Kansas Places, or have been deemed
contributors to a National or State Register Historic District.
Projects that qualify and are approved by the National Park Service
for the 20% Federal Tax Credit will also qualify for the Kansas
State Tax Credit.
-
Building may be either income-producing or non income-producing.
Private residences do qualify for the State Tax Credit.
-
Proposed work must follow a qualified rehabilitation plan. Qualified
projects are those that have been reviewed and approved by the
State Historic Preservation Office (SHPO) through the application
process.
-
Applications must be approved by the SHPO before work begins.
-
Project expenses must exceed $5,000. You may combine smaller
projects in order to exceed the minimum requirement.
-
All work must meet the Secretary of the Interior's Standards
for Rehabilitation
This will be determined by the SHPO staff during the application
process.
-
State Tax Credits may be carried forward for 10 years if you
are unable to use all of your credits in one year.
-
State Tax Credits may also be transferable to other taxpayers.
Please contact the SHPO for more information.
-
Application Process
-
Contact the SHPO to obtain applications and to verify that your
project will qualify for this program.
-
Part 1 -- Qualified Historic Structure Certification
-- This one-page form is only necessary if your building is located
in a National Register or State Register Historic District. The
form will be reviewed to verify that your building is a contributor
to the character of the historic district. Please be sure to provide
good photographs of the front elevation of your property.
-
Part 2 -- Qualified Rehabilitation Certification
-- This form is required for all applicants to certify that the
proposed project will meet the Secretary of the Interior's Standards
for Rehabilitation. The applicant should outline the building's
existing condition and all proposed work on this form. Photographs
showing all areas of proposed changes are required to accompany
this form. If you are proposing major changes or you are using
an architect, additional materials, such as drawings, may be required.
The SHPO staff will review the application and materials to certify
that all proposed work meets the Standards. The SHPO will
advise applicants and provide technical assistance when needed.
Work may begin on the proposed project only
after this application has been approved by the SHPO.
-
Application Processing Fee -- An application-processing
fee is required for the SHPO to review applications for the State
Tax Credit. The fees are based on the estimated dollar amount
of the qualified rehabilitation expenditures. The fee is not due
until requested by the SHPO, usually after submission of the Part
2 application.
| |
|
Qualified
Rehabilitation |
|
Expenditures |
Fee |
$5,000 - $25,000 |
$200 |
$25,001 - $50,000 |
$350 |
$50,001 - $100,000 |
$500 |
$100,001 - $500,000 |
$900 |
$500,001 - $1,000,000 |
$1,500 |
| |
|
| |
|
-
Part 3 -- Rehabilitation Completion Certification
-- This form should be submitted when all work has been completed.
Please include photographs of the finished work. Upon review and
approval by the SHPO, applicants will receive a certificate verifying
that they may claim 25% of their qualified expenses as credits
toward their Kansas state income, privilege, or premiums taxes.
-
Claiming the Kansas State Tax Credit -- When the work is complete applicants must submit Part 3 of the application along with Kansas Department of Revenue (KDOR) Schedules I and II. The KDOR will review and certify the project expenses while the SHPO will review and certify the completed work. Once both agencies finish their reviews a certificate will be issued to the applicant. Applicants may claim the State Tax Credit on Department of Revenue Form K-35. Please consult your financial advisor for more information or ask the SHPO staff for a contact at the KDOR.
If the amount of the tax credit exceeds your tax liability for the
year in which the property is placed in service, the excess amount may
be carried forward for up to ten years or the excess may be transferred
to another taxpayer. Please contact the SHPO for more information.
|
