Kansas Historic Preservation Credit

Historic Preservation Credit
K-35 Historic Preservation Credit Rev. 7-22
K-35

KANSAS

190418

HISTORIC PRESERVATION CREDIT

(Rev. 7-22)

For the taxable year beginning _________________________________ ,	20 _______ ; ending _______________________________ ,	20 ______
Name	of	taxpayer	(as	shown	on	return)	

Social	Security	Number	or	Employer	ID	Number	(EIN)

If	partner,	shareholder	or	member,	enter	name	of	partnership,	S	corporation,	LLC	or	LLP	

Employer	ID	Number	(EIN)

PART A – HISTORIC STRUCTURE INFORMATION
PROJECT NUMBER: ____________________________________________________________________

CERTIFICATE NUMBER: __________________________________________

A. Property Location:
_______________________________________________________________________________________________________________________________________________________________________________________

Name of Historic Property

_______________________________________________________________________________________________________________________________________________________________________________________

Address of Property

_______________________________________________________________________________________________________________________________________________________________________________________

City

State

Zip

County

PART B – REHABILITATION PROJECT INFORMATION
B. Project start date: _____________________________________________

Completion Date: _____________________________________

C. Are you claiming an acquired credit? (See Instructions) 	
No
 Yes If	yes,	you	must	enclose	a	copy	of	your	Certificate
of Transfer	issued	by	the	Kansas	State	Historical	Society.	If	this	is	your	first	year	to	claim	an	acquired	credit,	skip	lines	1	and	2	of	Part	
C and enter the total amount of the tax credit transferred to you on line 3, Part C. For the 2nd and subsequent tax years, enter the
amount of acquired credit carry forward on line 6, Part D.

PART C – COMPUTATION OF CREDIT AVAILABLE (Refer to the instructions on the back of this form)
1. Enter	the	total	costs	incurred	to	rehabilitate	the	historic	structure	(must	be	$5,000	or	more) ................... 1.	

_______________________________

2. Credit percentage allowed (see instructions) ............................................................................................ 2.

_______________________________

o 25%
o 30%	city	population	between	9,500	and	50,000
o 40%	city	population	less	than	9,500
o 30%	if	qualified	taxpayer	is	exempt	from	federal	income	taxation	pursuant	to	section	501(c)(3)	of	the	federal	internal	revenue
code

3. Total	credit	available	for	this	project	(multiply	line	1	by	line	2) .................................................................. 3.

_______________________________

4. Enter	your	proportionate	share	percentage	(see	Instructions) .................................................................. 4.

_______________________________

5. Credit	available	to	your	return	(multiply	line	3	by	line	4)............................................................................ 5.	

_______________________________

PART D – COMPUTATION OF THIS YEAR'S CREDIT
6. Amount	of	carry	forward	from	prior	year.	Enter	the	amount	from	line	10	of	the	prior	year’s
Schedule	K-35.	(Not	applicable	the	first	year	credit	is	claimed.) ............................................................... 6.

_______________________________

7. Total	credit	available	this	tax	year	(add	lines	5	and	6) .............................................................................. 7.

_______________________________

8. Enter	your	total	tax	liability	for	this	tax	year	after	all	credits	other	than	this	credit ..................................... 8.

_______________________________

9. Credit	this	tax	year	(enter	the	lesser	of	lines	7	or	8	here	and	on	the	appropriate	line	of	Form	K-40,
K-41,	K-120,	K-120S	or	K-130	for	nonrefundable	credits) ........................................................................ 9.	

_______________________________

If line 9 is less than line 7, complete line 10.

PART E – COMPUTATION OF CREDIT CARRY FORWARD
10. Subtract	line	9	from	line	7.	This	is	the	amount	of	credit	to	carry	forward	to	next	year’s	return.
Enter	this	amount	on	line	6	of	next	year’s	Schedule	K-35...................................................................... 10.	__________________________________

INSTRUCTIONS FOR SCHEDULE K-35
GENERAL INFORMATION
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 credit is equal to.
(1) 25%	 of	 qualified	 expenditures incurred	 in	 the	 restoration	 and
preservation	 of	 a	 qualified	 historic	 structure	 pursuant	 to	 a	 qualified
rehabilitation	plan by	a	qualified	taxpayer	if	the	total	amount	of	such	
expenditures	equals	$5,000	or	more;
(2)	For	tax	year	2022	and	forward,	30%	of	the	qualified	expenditures
incurred	 in	 the	 restoration	 and	 preservation	 of	 a	 qualified	 historic	
structure	located	in	a	city	with	a	population	between	9,500	and	50,000
pursuant	to	a	qualified	rehabilitation	plan	by	a	qualified	taxpayer	if	the	
total	amount	of	such	expenditures	equals	$5,000	or	more;
(3)	For	tax	year	2022	and	forward	40%	of	the	qualified	expenditures
incurred	 in	 the	 restoration	 and	 preservation	 of	 a	 qualified	 historic	
structure	located	in	a	city	with	a	population	of	less	than	9,500	pursuant	
to	 a	 qualified	 rehabilitation	 plan	 by	 a	 qualified	 taxpayer	 if	 the	 total	
amount	of	such	expenditures	equals	$5,000	or	more;	or
(4) 30%	 of	 qualified	 expenditures incurred	 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	 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.
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, unless the
pass-through entity has elected to be taxed at the entity level.
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.
K.S.A.	 74-50,227	 requires	 the	 collection	 of	 certain	 tax	 incentive	
information for publication on a database managed by the Kansas

Department of Commerce. Information collected will include the name
and	address,	including	county	of	the	recipient	receiving	the	benefits	
from the tax incentive program, the annual amount of incentive
claimed,	distributed	or	received,	qualification	criteria	for	the	incentive,	
and	required	benchmarks	for	continued	participation	in	the	program
and	progress	made	towards	the	benchmarks.

SPECIFIC LINE INSTRUCTIONS
Complete	a	separate	schedule	for	each	qualified	historic	structure.

PART A – HISTORIC STRUCTURE INFORMATION
Enter	 project	 number,	 certification	 number,	 and	 the	 name	 and	
address	of	the	qualified	historic	structure.	If	the	building	is	known	by	
a historic name, include this as well as the complete address of the
property.

PART B – REHABILITATION PROJECT INFORMATION
Complete	the	requested	information	about	the	certified	rehabilitation	
project. The state credit is generally available the same tax year
as	 the	 federal	 credit	 is	 taken.	 If	 the	 project	 does	 not	 qualify	 for	 the	
federal	credit,	the	state	credit	is	taken	the	year	in	which	the	qualified
rehabilitation	 plan	 was	 placed	 in	 service.	 If	 this	 is	 your	 first	 year	 to	
claim an acquired credit, enter the total amount of the transferred
credit on line 3 of Part C. Otherwise enter the acquired credit carry
forward on line 6, Part D.

PART C – COMPUTATION OF CREDIT AVAILABLE
LINE 1 –	Enter	the	total	qualified	expenses to	rehabilitate	the	structure.
This	 amount	 must	 be	 $5,000	 or	 larger.	 Do	 not	 include	 costs	
attributable to associated additions, furnishings, land, landscaping,
lighting	fixtures,	parking	lots,	site	work	etc.
LINE 2 – See the General Information section for an explanation of
these percentages.
LINE 3 –	Multiply	line	1	by	the	appropriate percentage	on	line	2.	This	
is the total credit available. Acquired credits: If	this	is	your	first	
year to claim a credit transferred from another, enter on line 3 the
total amount	of	the	credit	transferred	as	shown	on	your	Certificate	
of Transfer.
LINE 4 – Partners, shareholders and members of pass-through
entities: that have NOT elected to be taxed at the entity level.
Enter	 the	 percentage	 that	 represents	 your	 proportionate	 share	
percentage in the credit. If you have elected to be taxed at the
entity level, enter the sum of the percentages being taxed. All other
taxpayers:	Enter	100%.
LINE 5 –	 Multiply	 line	 3	 by	 line	 4.	 This	 is	 the	 amount	 of	 this	 year’s	
credit available to your income or privilege tax return.

PART D – COMPUTATION OF THIS YEAR'S CREDIT
LINE 6 –	Enter	any	carry	forward	amount	from	line	10	of	your	prior	
year’s	Schedule	K-35.
LINE 7 –	Add	lines	5	and	6.	This	is	your	total	credit	available	this	tax	
year.
LINE 8 –	Enter	your	Kansas	tax	liability	after	all	credits	other	than	this	
credit.
LINE 9 –	 Enter	 the	 lesser	 of	 lines 7	 or	 8.	 Enter	 this	 amount	 on	 the	
appropriate	line	of	Form	K-40,	Form	K-41,	Form	K-120,	K-120S or
Form	K-130.	If line 9 is less than line 7, complete line 10.

PART E – COMPUTATION OF CREDIT CARRY FORWARD
LINE 10 –	 Subtract	 line	 9	 from	 line	 7.	 This	 is	 the	 amount	 of	 credit	
available	to	enter	on	line	6	of	your	next	year’s	Schedule	K-35.
IMPORTANT: Do not send any enclosures with this schedule,
however,	 be	 sure	 to	 keep	 copies	 of	 the	 following	 with	 your	
records as the Kansas Department of Revenue reserves the
right to request additional information as necessary.
• Tax	credit	certificate	from	the	Kansas	State	Historical	Society.
• Federal Form 3468, if applicable.
• Itemized list of actual costs and expenses.
• Certificate	of	Transfer	from	the	Kansas	State	Historical	Society	if
you are claiming an acquired credit.

TAXPAYER ASSISTANCE
For assistance with the federal and state rehabilitation credits contact:
Cultural Resources Division
Kansas State Historical Society
6425	SW	6th	Ave.
Topeka,	KS	66615-1099
Phone:	785-272-8681	Ext.	240
Fax:	785-272-8682
kshs.org

For assistance in completing this schedule contact the Kansas
Department of Revenue:
Taxpayer Assistance Center
Scott	Office	Building
120	SE	10th	Ave.
PO	Box	750260
Topeka,	KS	66699-0260
Phone:	785-368-8222
Fax:	785-291-3614
Additional copies of this credit schedule and other tax forms are
available from our website at: ksrevenue.gov