HOUSE BILL No. 2128*
An Act relating to income taxation; allowing credits for certain
historic preservation project expenditures.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) For all taxable years commencing after December 31,
2000, there shall be allowed a tax credit against the income tax liability
imposed upon a taxpayer pursuant to the Kansas income tax act in an
amount equal to 25% of qualified expenditures incurred in the restoration
and preservation of a qualified historic structure pursuant to a qualified
rehabilitation plan by a qualified taxpayer if the total amount of such
expenditures equal $5,000 or more. If the amount of such tax credit ex-
ceeds the qualified taxpayer's income tax liability for the year in which
such costs and expenses were incurred, such excess amount may be car-
ried over for deduction from such taxpayer's income 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 10th taxable year succeeding the taxable year
in which the qualified expenditures were incurred.

      (b) As used in this section, unless the context clearly indicates oth-

      (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 or 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 consis-
tent 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 col-
lect 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 rehabili-
tation credit allowed by section 47 of the federal internal revenue code.

 Sec.  2. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 16, 2001.