The Kansas Historic Preservation Credit, reported on Schedule K-35, allows qualified taxpayers to claim a tax credit against their Kansas income, privilege, or premium tax for expenditures related to the restoration or preservation of a qualified historic structure. This credit is authorized under K.S.A. 79-32,211 and administered by the Kansas State Historical Society. The credit is available only if the restoration is performed according to an approved rehabilitation plan and meets federal standards defined in section 47(c)(2) of the Internal Revenue Code.
Eligibility and Credit Details
- Qualified Taxpayer: A qualified taxpayer is the owner of a qualified historic structure or another taxpayer eligible under Kansas law to claim the historic preservation credit. The taxpayer must incur qualified rehabilitation expenditures for an approved rehabilitation project that meets the requirements of the Kansas Historic Preservation Tax Credit Program.
- Qualified Expenditures: Costs incurred for the rehabilitation of a qualified historic structure that meet the federal definition of qualified rehabilitation expenditures under Internal Revenue Code § 47(c)(2).
- Credit Amount: The Kansas Historic Preservation Credit is calculated based on the allowable percentage of qualified rehabilitation expenditures for an approved certified historic rehabilitation project. The applicable credit percentage, limitations, and requirements must be determined according to the current Schedule K-35 instructions and Kansas law.
- Credit Carryforward: If the allowable Kansas Historic Preservation Credit exceeds the taxpayer’s Kansas tax liability for the year, any unused credit may be carried forward as permitted under Kansas law and the Schedule K-35 instructions.
- Credit Transfer: Certain Kansas Historic Preservation Credits may be transferred, assigned, or conveyed to another taxpayer as permitted by Kansas law. The use of transferred credits is subject to applicable Kansas Department of Revenue requirements and limitations.
Reporting Requirements
- Information collected via Schedule K-35 is required under K.S.A. 74-50,227 for publication in a database managed by the Kansas Department of Commerce.
- Data collected includes the recipient’s name, address, and county.
How to File Schedule K-35
- Complete Schedule K-35 and attach it to your Kansas income, privilege, or premium tax return, as applicable.
- Enter the required credit information and complete all applicable sections of the schedule.
- Retain the project certification and supporting documentation to substantiate the credit claimed.
Source:
Schedule K-35 (Kansas Historic Preservation Credit)
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. For complex situations, consult a CPA or tax attorney.