Ezel / Tax Rulings / KS

What is the Kansas historic preservation tax credit and how much is it after the 2025 changes?

Short answer Kansas Notice 25-04 explains 2025 Senate Bill 227, which amended K.S.A. 2024 Supp. 79-32,211 to set new percentages for the income, privilege, or premium tax credit for restoring and preserving qualified historic structures, based on the population where the structure sits and the amount spent. For qualified rehabilitation plans placed into service on or after July 1, 2025, the credit equals: 25% of qualified expenditures for a structure in a city of more than 50,000 people when expenditures are at least $5,000 but less than $50,000; 40% for a structure in a city of more than 50,000 when expenditures are $50,000 or more; 40% for a structure in a city, township, or unincorporated area of 50,000 or fewer when expenditures are $5,000 or more; and 40% for a structure that is exempt under IRC section 501(c)(3) and not income-producing when expenditures total $5,000 or more. The Department may reduce the credit by any delinquent income, privilege, premium, sales, or compensating use taxes (with interest, additions, or penalties) the taxpayer owes the state.
State
KS
Ruling
Notice 25-04
Tax type
Kansas Income Tax; Privilege Tax; Insurance Premiums Tax
Issued
2025-07-03
Issued by
Kansas Department of Revenue
Topics
income tax tax credit historic preservation rehabilitation nonprofit organizations
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 2025. Ask about yours and see what current Kansas tax law says, with citations.

Disclaimer: This is an official Kansas Department of Revenue Notice: public guidance the Department issues to explain Kansas tax law, most often a newly enacted statute. It states the Department's general interpretation and administration of the law; it does not have the force of law and is not a private ruling issued to any one taxpayer. It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

2025 Senate Bill 227 amended K.S.A. 2024 Supp. 79-32,211 to set new credit percentages for the restoration and preservation of qualified historic structures. The credit is an income, privilege, or premium tax credit, and the percentage now depends on where the structure is (city size) and how much is spent.

For qualified rehabilitation plans placed into service on or after July 1, 2025, the credit equals:

  • 25% of qualified expenditures — structure in a city of more than 50,000 people, when expenditures are at least $5,000 but less than $50,000;
  • 40% — structure in a city of more than 50,000, when expenditures are $50,000 or more;
  • 40% — structure in a city, township, or unincorporated area of 50,000 or fewer people, when expenditures are $5,000 or more;
  • 40% — structure that is exempt from federal income tax under IRC § 501(c)(3) and not income-producing, when expenditures total $5,000 or more.

Each requires a qualified rehabilitation plan by a qualified taxpayer. New subsection 79-32,211(g) says these amended percentages apply to plans placed into service on or after July 1, 2025. New subsection (h) lets the Department of Revenue verify whether the taxpayer owes delinquent income, privilege, premium, sales, or compensating use taxes (plus interest, additions, or penalties) and reduce the credit by amounts owed to the state.

What this means for you

Owners rehabilitating historic structures

  • Your credit rate is 25% or 40% depending on the city population and your spending level — smaller communities (50,000 or fewer) and larger projects ($50,000+) in big cities get the full 40%.
  • The threshold to qualify starts at $5,000 in qualified expenditures (except the $5,000–<$50,000 big-city band, which is 25%).
  • These rates apply to plans placed into service on or after July 1, 2025 — timing matters.

Nonprofits (501(c)(3)) with non-income-producing historic buildings

  • A 40% credit is available for a 501(c)(3)-exempt, non-income-producing historic structure with $5,000+ in qualified expenditures — a notable path for churches, museums, and similar organizations.

Anyone claiming the credit

  • The Department can offset your credit against delinquent state taxes (income, privilege, premium, sales, or use) plus interest and penalties — clear up any back taxes to preserve the full credit.

Common questions

Q: What law changed the credit?
A: 2025 Senate Bill 227, amending K.S.A. 2024 Supp. 79-32,211, for plans placed into service on or after July 1, 2025.

Q: When is the credit 25% versus 40%?
A: 25% for a big-city (>50,000) project spending $5,000–under $50,000; 40% for big-city projects of $50,000+, for projects in areas of 50,000 or fewer spending $5,000+, and for 501(c)(3) non-income-producing structures spending $5,000+.

Q: Which taxes can the credit apply against?
A: Income, privilege, or premium tax.

Q: Can the state reduce my credit?
A: Yes — by any delinquent income, privilege, premium, sales, or compensating use taxes (with interest, additions, or penalties) you owe the state.

Citations and references

  • Senate Bill 227 (2025) — the enacting law; notice issued July 3, 2025.
  • K.S.A. 2024 Supp. 79-32,211(a) (Section 1) — the 25%/40% credit tiers based on city population and expenditure amount, for plans placed into service on or after July 1, 2025.
  • K.S.A. 79-32,211(g) — amended provisions apply to qualified rehabilitation plans placed into service on or after July 1, 2025.
  • K.S.A. 79-32,211(h) — Department may reduce the credit by delinquent income, privilege, premium, sales, or compensating use taxes (and interest, additions, penalties) owed to the state.
  • Effective date: plans placed into service on or after July 1, 2025.

Source

Original ruling text

Policy and Research
109 SW 9th Street
Phone: 785-368-8222
PO Box 3506
Fax: 785-296-1279
Topeka KS 66601-3506
www.ksrevenue.gov
Mark A. Burghart, Secretary
Laura Kelly, Governor

NOTICE 25-04

HISTORIC PRESERVATION CREDIT

(JULY 3, 2025)

During the 2025 Legislative Session, Senate Bill 227 was passed and signed into law.
Section 1 of the Bill amends K.S.A. 2024 Supp. 79-32,211 to provide different credit percentages for the restoration and preservation of historic structures, based on the population of the area where the structure is located and the amount of the expenditures.

The amendments to K.S.A. 2024 Supp. 79-32,211(a) provide, for qualified plans placed into service on or after July 1, 2025, an income, privilege, or premium tax credit is allowed in an amount equal to:

  • 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, with qualified expenditures equal to at least $5,000 but less than $50,000, or • 40% of the 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, with qualified expenditures of $50,000 or more or
  • 40% of the qualified expenditures incurred in the restoration and preservation of a qualified historic structure located in a city, township, or unincorporated area with a population of 50,000 or less, pursuant to a qualified rehabilitation plan by a qualified taxpayer with qualified expenditures equal to $5,000 or more, or • 40% of the qualified expenditures incurred in the restoration and preservation of a qualified historic structure which is exempt from federal income tax pursuant to section 501(c)(3) of the federal internal revenue code and which is not income producing pursuant to a qualified rehabilitation plan by a qualified taxpayer if the total amount of expenditures equals $5,000 or more.

New subsection 79-32,211(g) provides the amended provisions apply to qualified rehabilitation plans placed into service on or after July 1, 2025.

New subsection 79-32,211(h) provides the Department of Revenue may verify if the taxpayer claiming the credit has delinquent income, privilege, premium, sales, or compensating use taxes, or interest, additions, or penalties on such taxes, and reduce the amount of credit by such amounts that are owed to the state.

TAXPAYER ASSISTANCE

Additional copies of this notice, forms or publications are available from our web site, www.ksrevenue.gov. If you have questions about this Notice, please contact:

Taxpayer Assistance Center
Kansas Department of Revenue
Scott Office Building, 1st Floor
120 SE 10th Ave
P. O. Box 3506
Topeka, KS 66601-3506
Phone: 785-368-8222
Fax: 785-291-3614

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