Committee hears testimony on bill raising historic rehabilitation tax credit in larger cities

Senate Bill 227 would change the percentage and qualifying thresholds for the Kansas historic rehabilitation tax credit and took a public hearing before the Committee on Taxation, which heard proponents describe economic benefits and the Department of Revenue present an estimate of reduced state revenue.

The bill would tier credits by community size and project cost. Under the bill as described to the committee, qualified expenditures in cities with a population greater than 50,000 would be eligible for a 25 percent credit when the expenditures are at least $5,000 but less than $50,000 and a 40 percent credit when expenditures exceed $50,000. The bill would also allow a 40 percent credit for qualified expenditures on historic structures that are exempt from federal income taxation. The changes would apply to any qualified rehabilitation plan placed in service on or after July 1, 2025.

Supporters told the committee the tax credit helps bridge financing gaps that otherwise prevent rehabilitation projects from moving forward. Jennifer Sork, who said she represents Clayton…