PRIVILEGE TAXPAYERS-Effective for all taxable years beginning after December 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 State Historical Society

6425 SW 6th

Topeka, KS 66615-1099

(785) 272-8681 ext. 240

Credit Amount

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

Transfer of Credit

For taxable years beginning after December 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% 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 taxpayers 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.

For more information, see the Kansas Website, Form K-35, or our Knowledge Base.

Back