Lynne,
The Kansas Rehabilitation Tax Credit program was signed into
law in 2001 and has become one of the most progressive historic preservation
incentive programs in the nation.
Amendments to the original statute (K.S.A. 79-32,211) in 2002 clarified
that these tax credits were transferable and could be utilized by any owner of
a historic building including private homeowners, non-profit organizations, and
local governments. Further clarification
by the Kansas Department of Revenue in recent years has allowed agencies of the
State itself to utilize this program including the Kansas Army National Guard
and the
This program was enacted to help relieve owners of historic properties of some of the costs associated with rehabilitation of their buildings.
However, the legislature also knew that by helping property
owners afford rehabilitations they were also encouraging property owners and
developers to invest in our state's historic resources. That investment in the rehabilitation of
historic buildings generates an incredible impact on the local economy. For smaller projects like the Lawrence
Carnegie Library rehabilitation completed in 2004 at a cost of $346,682, the
investment by the local government generated approximately 15 new jobs,
approximately $728,032 in gross domestic product, and over $63,000 in state and
local taxes. This is not to mention the
direct benefit back to the City of
The currently proposed project at the Carnegie Library is
expected to exceed $1.2 million dollars in total. While most of that expense will be non-qualifying
for the rehabilitation tax credits because the work involves a new addition and
portions of the work will be covered by a federal grant, there will still be
considerable expenses for the rehabilitation of the existing historic portions
of the library that will indeed qualify for this program. Twenty-five percent of those expenses would
be awarded back the City of
If there are any questions about the program, feel free to have people contact me at the number or e-mail below. They are also welcome to contact my colleague in the Kansas Department of Revenue if they have questions related to tax issues. Kathleen Smith of the Department of Revenue can be reached at 785-296-3070 or kathleen_smith@kdor.state.ks.us.
Thank you,
Katrina
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Katrina L. Ringler
Tax Credit Programs Coordinator
Cultural Resources Division
(785) 272-8681 ext.213
kringler@kshs.org
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