Kansas Issues Notice Explaining Provisions of Recently Enacted State HTC Provisions

Monday, November 14, 2022 - 9:30am

The Kansas Department of Revenue issued a notice describing two provisions passed into law for the state historic tax credit (HTC) and explaining how to claim the credit. H.B. 2237 included provisions to increase the state HTC to 30% for properties in cities with a population between 9,500 and 50,000 and to 40% for properties in a city with a population of less than 9,500. The legislation also requires a bank, savings and loan association or savings bank to pay taxes on 50% of the interested earned on loans to qualified taxpayers used for qualified expenditures for restoration and preservation of a qualified historic structure. The notice says taxpayers should complete and submit a Schedule K-35 with their income tax return to claim the state HTC.

The Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and the intricacies of the incentive, both on the federal and state level.