Schedule K-35 - Historic Preservation Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-35

PART C — COMPUTATION OF CREDIT AVAILABLE

GENERAL INFORMATION

K.S.A. 79-32,211 provides a tax credit against the income, privilege

LINE 1 – Enter the total qualified expenses to rehabilitate the structure.

or premium tax for certain historic preservation project expenditures.

This amount must be $5,000 or larger. Do not include costs attributable

to associated additions, furnishings, land, landscaping, lighting

The credit is available to a qualified taxpayer that makes qualified

fixtures, parking lots, site work etc.

expenditures to restore or preserve a qualified historic structure according

to a qualified rehabilitation plan. The amount of the credit is 25% of

LINE 2 – Circle the appropriate percentage for the credit amount – either

qualified expenditures when the total amount of the expenditures equals

25% or 30% of the qualified expenditures. See the General Information

$5,000 or more.

section for an explanation of these percentages.

For tax years beginning after December 31, 2006, the amount of the

LINE 3 – Multiply line 1 by the appropriate percentage on line 2. This is

credit is 30% of qualified expenditures incurred and paid in the restoration

the total credit available. Acquired credits: If this is your first year to

and preservation of a qualified historic structure which is exempt from

claim a credit transferred from another, enter on line 3 the total amount

federal income taxation pursuant to section 501(c)(3) of the IRC and

of the credit transferred as shown on your Certificate of Transfer.

which is not income producing pursuant to a qualified rehabilitation plan

LINE 4 – Partners, shareholders and members of pass-through entities:

by a qualified taxpayer. The total amount of such expenditures must equal

Enter the percentage that represents your proportionate share in the

$5,000 or more in order to claim the credit.

credit. All other taxpayers: Enter 100%.

Partners, shareholders and members of a pass-through entity will

claim this credit in the same manner as they account for their proportionate

LINE 5 – Multiply line 3 by line 4. This is the amount of this year’s credit

shares of the income or loss of that entity.

available to your income or privilege tax return.

If the tax credit exceeds the income, privilege or premium tax liability

K-120S filers STOP HERE. This is your established credit amount.

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)

PART D — COMPUTATION OF THIS YEAR’S CREDIT

until the total credit has been used except that no credit may be carried

over for deduction after the 10

taxable year succeeding the year in

LINE 6 – Enter any carry forward amount from line 10 of your prior year’s

which the qualified rehabilitation plan was placed in service.

Schedule K-35.

Tax credits allowed and earned may be sold, assigned or otherwise

LINE 7 – Add lines 5 and 6. This is your total credit available this tax year.

transferred to a taxpayer (assignee) who may use the acquired credit

LINE 8 – Enter your Kansas tax liability after all credits other than this 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.

LINE 9 – Enter the lesser of lines 7 or 8. Enter this amount on the

Unused credit amounts claimed by an assignee may be carried forward

appropriate line of Form K-40, Form K-41, Form K-120 or Form K-130.

for up to 5 years, except that all such amounts shall be claimed within 10

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

years following the tax year in which the qualified rehabilitation plan was

PART E — COMPUTATION OF CREDIT CARRY FORWARD

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

LINE 10 – Subtract line 9 from line 7. This is the amount of credit available

value of the credit over the amount paid by the assignee for the credit

to enter on line 6 of your next year’s Schedule K-35.

shall be taxable as income to the assignee.

A qualified taxpayer is the owner of the qualified historic structure or

IMPORTANT: Do not send any enclosures with this schedule,

any other person who may qualify for the federal rehabilitation credit

however, be sure to keep copies of the following with your

allowed by section 47 of the federal internal revenue code.

records as KDOR (Kansas Department of Revenue) reserves

A qualified historic structure is any building, whether or not income

the right to request additional information as necessary.

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

• Tax credit certificate from the Kansas State Historical Society.

• Federal Form 3468, if applicable.

district listed on the register of Kansas historic places.

• Itemized list of actual costs and expenses.

A qualified rehabilitation plan is a project that has been approved

• Certificate of Transfer from the Kansas State Historical Society if

by the Cultural Resources Division of the Kansas State Historical Society,

you are claiming an acquired credit.

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

TAXPAYER ASSISTANCE

historical buildings as adopted by the federal secretary of interior.

Qualified expenditures are costs and expenses incurred by a qualified

For information and assistance with the federal and state rehabilitation

taxpayer in the restoration and preservation of the qualified historic

credits contact:

structure according to the approved plan which are defined as a qualified

Cultural Resources Division

rehabilitation expenditure by section 47(c)(2) of the federal internal

Kansas State Historical Society

revenue code.

6425 SW 6

Ave.

Topeka, KS 66615-1099

SPECIFIC LINE INSTRUCTIONS

Phone: (785) 272-8681 Ext. 240

Complete a separate schedule for each qualified historic structure.

Fax: (785) 272-8682

PART A — HISTORIC STRUCTURE INFORMATION

Enter project number, certification number, and the name and address

For assistance in completing this schedule contact the Kansas

of the qualified historic structure. If the building is known by a historic

Department of Revenue:

name, include this as well as the complete address of the property.

Tax Operations

PART B — REHABILITATION PROJECT INFORMATION

Docking State Office Building, 1st fl.

915 SW Harrison St.

Complete the requested information about the certified rehabilitation

Topeka, KS 66625-2007

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,

Phone: (785) 368-8222

the state credit is taken the year in which the qualified rehabilitation plan

Fax: (785) 291-3614

was placed in service. If this is your first year to claim an acquired credit,

Additional copies of this credit schedule and other tax forms are

enter the total amount of the transferred credit on line 3 of Part C.

available from our web site at:

Otherwise enter the acquired credit carry forward on line 6, Part D.

Schedule K-35 - Historic Preservation Credit Page 2

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