Session of 2025
SENATE BILL No. 227
By Committee on Commerce
2-6
AN ACT concerning economic development; relating to the tax credit for
qualified expenditures for the restoration and preservation of historic
structures; providing for different credit percentages based on city
populations of more than 50,000 or 50,000 or less and the amount of
expenditures; amending K.S.A. 2024 Supp. 79-32,211 and repealing
the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 79-32,211 is hereby amended to read as
follows: 79-32,211. (a) For all taxable years commencing after December
31, 2006, there shall be allowed a tax credit against the income, privilege
or premium tax liability imposed upon a taxpayer pursuant to the Kansas
income tax act, the privilege tax imposed upon any national banking
association, state bank, trust company or savings and loan association
pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and
amendments thereto, or the premiums tax and privilege fees imposed upon
an insurance company pursuant to K.S.A. 40-252, and amendments
thereto, in an amount equal to:
(1) 25% of qualified expenditures incurred in the restoration and
preservation of a qualified historic structure located in a city with a
population of more than 50,000 pursuant to a qualified rehabilitation plan
by a qualified taxpayer if the total amount of such expenditures equals at
least $5,000 or more and less than $50,000;
(2) 30%40% 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 of more than 50,000 pursuant to a qualified
rehabilitation plan by a qualified taxpayer if the total amount of such
expenditures equals $5,000 $50,000 or more;
(3) 40% of the qualified expenditures incurred in the restoration and
preservation of a qualified historic structure located in a city with a
population of 50,000 or 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%40% 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36 SB 227 2
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.
(b) If the amount of such tax credit exceeds the qualified taxpayer's
income, privilege or premium tax liability for the year in which the
qualified rehabilitation plan was placed in service, as defined by section
47(b)(1) of the federal internal revenue code and federal regulation section
1.48-12(f)(2), such excess amount may be carried over for deduction from
such taxpayer's income, privilege or premium tax liability in the next
succeeding year or years until the total amount of the credit has been
deducted from tax liability, except that no such credit shall be carried over
for deduction after the 10
th
taxable year succeeding the taxable year in
which the qualified rehabilitation plan was placed in service.
(c) Any bank, savings and loan association or savings bank shall pay
taxes on 50% of the interest earned on loans to qualified taxpayers used for
qualified expenditures for the restoration and preservation of a qualified
historic structure.
(d) As used in this section, unless the context clearly indicates
otherwise:
(1) "Qualified expenditures" means the costs and expenses incurred
by a qualified taxpayer in the restoration and preservation of a qualified
historic structure pursuant to a qualified rehabilitation plan which are
defined as a qualified rehabilitation expenditure by section 47(c)(2) of the
federal internal revenue code;
(2) "qualified historic structure" means 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;
(3) "qualified rehabilitation plan" means a project which is approved
by the cultural resources division of the state historical society, or by a
local government certified by the division to so approve, as being
consistent with the standards for rehabilitation and guidelines for
rehabilitation of historic buildings as adopted by the federal secretary of
interior and in effect on the effective date of this act. The society shall
adopt rules and regulations providing application and approval procedures
necessary to effectively and efficiently provide compliance with this act,
and may collect fees in order to defray its approval costs in accordance
with rules and regulations adopted therefor; and
(4) "qualified taxpayer" means 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.
If the taxpayer is a corporation having an election in effect under
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 227 3
subchapter S of the federal internal revenue code, a partnership or a
limited liability company, the credit provided by this section shall be
claimed by the shareholders of such corporation, the partners of such
partnership or the members of such limited liability company in the same
manner as such shareholders, partners or members account for their
proportionate shares of the income or loss of the corporation, partnership
or limited liability company, or as the corporation, partnership or limited
liability company mutually agree as provided in the bylaws or other
executed agreement. Credits granted to a partnership, a limited liability
company taxed as a partnership or other multiple owners of property shall
be passed through to the partners, members or owners respectively pro rata
or pursuant to an executed agreement among the partners, members or
owners documenting any alternate distribution method.
(e) Any person, hereinafter designated the assignor, may sell, assign,
convey or otherwise transfer tax credits allowed and earned pursuant to
subsection (a). The taxpayer acquiring credits, hereinafter designated the
assignee, may use the amount of the acquired credits to offset up to 100%
of such assignee's income, privilege or premiums tax liability for either the
taxable year in which the qualified rehabilitation plan was first placed into
service or the taxable year in which such acquisition was made. Unused
credit amounts claimed by the assignee may be carried forward for up to
five 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 assignor shall enter into a written agreement with
the assignee establishing the terms and conditions of the agreement and
shall perfect such transfer by notifying the cultural resources division of
the state historical society in writing within 90 calendar days following the
effective date of the transfer and shall provide any information as may be
required by such division to administer and carry out the provisions of this
section. The amount received by the assignor of such tax credit shall be
taxable as income of the assignor, and the excess of the value of such
credit over the amount paid by the assignee for such credit shall be taxable
as income of the assignee.
(f) The executive director of the state historical society may adopt
rules and regulations as necessary for the efficient and effective
administration of the provisions of this section.
Sec. 2. K.S.A. 2024 Supp. 79-32,211 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39