State Historic Rehabilitation Tax Credit
State Tax Credit Program News!
If you have recently submitted a State Tax Credit Application and would like to check the status of the review please click HERE.
Starting July 1, 2025, the Kansas Historic Rehabilitation Tax Credit percentage available will be based on the following conditions. All eligible projects in communities with populations under 50,000 and all eligible projects owned by 501c3 organizations will receive credits equal to 40% of the qualifying project costs. Eligible projects with qualifying costs over $50,000 in communities with populations over 50,000 will also receive credits equal to 40% of qualifying costs.
Overview
The Kansas Historic Rehabilitation Tax Credit was created in 2001. Since that time the program has generated over $1 billion dollars of investment in historic buildings throughout Kansas. The state historic tax credit program provides a state income tax credit equal to a percentage of the property owner's qualified rehabilitation costs.
Already familiar and ready to start the applications? Click HERE
Requirements to participate in the Kansas Historic Rehabilitation Tax Credit program
Work must be done to a Register-listed building
- The property must be listed on the state or National Register of Historic Places before an application for credits is submitted. Check to see if your property is register-listed by searching HERE.
- The work must be done to a building. Work done on the surrounding site, landscaping, outside the footprint of a building, or on a structure that is not a building (i.e. bridge, monument, water tower) is not eligible for the credit.
The qualified expenses must be paid by the building owner and must total to $5,000 or more.
- Only building owners or long-term leasees are may receive the credits.
- Insurance proceeds, grant money, and any other money not charged to a capital account, may not be counted towards the qualified project total.
- Multiple work items may be combined to reach the $5,000 minimum requirement. See examples of qualifying and non-qualifying expenditures.
Application must be submitted and approved BEFORE physical work begins
- All work must meet the Secretary of the Interior's Standards for Rehabilitation.
- The project plan, as outlined in a Part 2 application, must be reviewed before the work starts to ensure that the work meets the Standards.
- Amendments to the plan may be submitted later, but even then, the work outlined must be reviewed and approved by SHPO staff before work continues.
- If ANY portion of the project work does NOT meet the Standards for Rehabilitation, the entire project will be denied and no credits will be issued.
- In case of building or project emergencies, please email the tax credit email for help kshs.taxcredits@ks.gov or call 785-272-8681 ext. 240.
How to use the Credits
Once a project is complete, the applicant must submit final documentation with a Part 3 application. Credits will be issued based upon the total invested in qualified costs. The Part 3 application, photographs, and expense review forms are submitted to the SHPO office. Once a complete application is submitted it will be reviewed. If the work meets the Secretary of the Interior's Standards for Rehabilitation then the project is approved by the SHPO office. Project expenses are reviewed to ensure compliance with applicable tax guidance. Upon calculation of expenses, a certificate is issued to the owner with the credit amount. These credits can be used by the owner in several different ways. See more at the bottom of this page.
Application Process
Click on the link below to open the document as a pdf. Please save application forms to your computer before filling them out.
- KDOR Schedules I & II
- KDOR Schedules instructions
- KDOR Schedules checklist
Part 1—Qualified Historic Structure Certification (Please save the application form to your computer before filling it out.) -
This one-page form is required if your building is located in a National Register or State Register Historic District. The form will be reviewed to verify that your building is a contributor to the character of the historic district. Please be sure to provide good photographs of the front elevation of your property.
Part 2—Qualified Rehabilitation Certification (Please save the application form to your computer before filling it out.) -
This form is required for all applicants to certify that the proposed project will meet the Secretary of the Interior's Standards for Rehabilitation. The applicant should outline the building's existing condition and all proposed work on this form. Descriptions of work should include all work items, not just those listed as qualifying costs. Photographs showing all areas of proposed changes are required to accompany this form. If you are proposing major changes or you are using an architect, additional materials, such as drawings, may be required. The SHPO staff will review the application and materials to certify that all proposed work meets the Standards. The SHPO will advise applicants and provide technical assistance when needed. Work may begin on the proposed project only after this application has been approved by the SHPO.
Application Processing Fee—An application-processing fee is required for the SHPO to review state tax credit applications. Fees are based on the estimated dollar amount of qualified rehabilitation expenditures. Please submit the appropriate fee as noted below with your Part 2 application or as requested by SHPO staff. Fees may be paid via the online store; scroll to the bottom of the store's webpage and click "Tax Credits".
Qualified Expenditures Fee
$5,000 - $25,000 $200
$25,001 - $50,000 $350
$50,001 - $100,000 $500
$100,001 - $500,000 $900
$500,001 - $1,000,000 $1,500
over $1,000,000 $2,000
Amendments (Please save the application form to your computer before filling it out.)
Once you have an open project on file with the SHPO, any changes to the proposed scope of work must be submitted for approval to the tax review staff via an amendment form before those changes are implemented.
Part 3—Rehabilitation Completion Certification (Please save the application form to your computer before filling it out.) -
This form must be submitted when all work has been completed. Photographs of the finished work must accompany the submission. Upon review and approval by the SHPO, applicants will receive a certificate verifying that they may claim a percentage of their qualified expenses as credit toward their Kansas state income, privilege, or premiums taxes. Qualified expenses are generally those associated with the physical structure of the building, but other soft costs can be applied as well.
To verif
y the project expenses and receive credits, the Kansas Department of Revenue (KDOR) Schedules I and II must be submitted with the part 3 application form. Contact the SHPO or click the following links for instructions and a checklist to help you complete the Schedules.
Using the Credits
Once the rehabilitation project is complete and the Part 3 has been approved, credits will be issued. State historic tax credits can be claimed by the holder of the credits by submitting the K-35 form with their state tax return. The credits may be used on state of Kansas income, premium, or privilege taxes. The credits are non-refundable and must be used to pay a tax liability.
For non-profit organizations, local governments, and other property owners that do not have a Kansas state income tax liability, these credits may be transferred or sold to other taxpayers. For additional information and submission of a transfer please go here: State Historic Tax Credit Transfers
Questions?
Please contact the SHPO or Tax Credit Program Administrators if you have questions at 785-272-8681 x240 or kshs.taxcredits@ks.gov
