CAN I GET INCOME TAX CREDITS FOR FIXING UP MY WESTHEIGHT HOME?
Yes, Perhaps
Because our Westheight Manor Historic District is listed in the Kansas Register of Historic Places, many homes within the district are eligible to qualify for State Tax Credit equal to 25% of your qualified expenses on the project. However, only those properties within Westheight listed in the state records as “Contributing” to the historic district may qualify.
Is My Home “Contributing”?
Use the Kansas Historic Resource Inventory or KHRI (www.khri.kansasgis.org) to check how your house within the historic district is recorded in state records. Open “Search” tab and a long list of fill-in boxes appear. Just fill in the top 7 boxes to include your complete address, being sure to utilize each pull-down menu. Then scroll to the bottom of the page to press “Search.” The listing for your home should come up highlighted. Click on it and the complete detailed listing with record photos should appear. Note: What got put online initially was a 1980s paper database.
If My Home is Non-Contributing, Am I Out of Luck?
Perhaps not. Often the reason a structure is listed as “Non-Contributing” is fairly well outlined. There have been recent instances in Westheight where the “offending” reasons were able to be rectified, allow a non-contributing home to be changed to “Contributing.”
What Kind of Work Qualifies (https://www.kshs.org/preserve/pdfs/qualified_expenses_9-2017.pdf):
The State Historic Preservation Office (SHPO) often uses this analogy – If you can pick up your house, turn it upside down, and shake it, anything that does NOT fall out can qualify as an expense to submit for the 25% tax credit. Just a few examples of submitted expenses (Qualifying vs. Non-Qualifying):
Building Exteriors (Qualifying) Landscaping & Fencing (Non-Qualifying)
Walls, Ceilings, & Floors (Qualifying) Paving & Retaining Walls (Non-Qualifying)
Electrical, Plumbing, & HVAC (Qualifying) Appliances (Non-Qualifying)
Architect & Engineering Fees (Qualifying) Any Enlargement of Building (Non-Qualifying)
Other Requirements Summarized (State Historic Rehabilitation Tax Credit):
“Secretary of the Interior's Standards for Rehabilitation”?
The intent of the Standards is to assist the long-term preservation of a property's significance through the preservation of historic materials and features. Rehabilitation work must be determined to be consistent with the historic character of the structure. The Standards state that they are to be applied to specific rehabilitation projects in a reasonable manner, taking into consideration economic and technical feasibility. (www.nps.gov/tps/standards/rehabilitation.htm):
Yes, Perhaps
Because our Westheight Manor Historic District is listed in the Kansas Register of Historic Places, many homes within the district are eligible to qualify for State Tax Credit equal to 25% of your qualified expenses on the project. However, only those properties within Westheight listed in the state records as “Contributing” to the historic district may qualify.
Is My Home “Contributing”?
Use the Kansas Historic Resource Inventory or KHRI (www.khri.kansasgis.org) to check how your house within the historic district is recorded in state records. Open “Search” tab and a long list of fill-in boxes appear. Just fill in the top 7 boxes to include your complete address, being sure to utilize each pull-down menu. Then scroll to the bottom of the page to press “Search.” The listing for your home should come up highlighted. Click on it and the complete detailed listing with record photos should appear. Note: What got put online initially was a 1980s paper database.
- Look for “Register Status” – Note that homes need to be marked “Contributing” to the historic district to be able to qualify for the state’s historic rehabilitation income tax credits
- You can also look for “Physical Description/Remarks” – This data is often what regulators use when determining what may or may not have been “original” regarding your home
- Look for “Images” as well – Similar to what’s listed under “Physical Description/Remarks,” the earliest photos often will be what will be used when determining what may or may not be “original.”
If My Home is Non-Contributing, Am I Out of Luck?
Perhaps not. Often the reason a structure is listed as “Non-Contributing” is fairly well outlined. There have been recent instances in Westheight where the “offending” reasons were able to be rectified, allow a non-contributing home to be changed to “Contributing.”
What Kind of Work Qualifies (https://www.kshs.org/preserve/pdfs/qualified_expenses_9-2017.pdf):
The State Historic Preservation Office (SHPO) often uses this analogy – If you can pick up your house, turn it upside down, and shake it, anything that does NOT fall out can qualify as an expense to submit for the 25% tax credit. Just a few examples of submitted expenses (Qualifying vs. Non-Qualifying):
Building Exteriors (Qualifying) Landscaping & Fencing (Non-Qualifying)
Walls, Ceilings, & Floors (Qualifying) Paving & Retaining Walls (Non-Qualifying)
Electrical, Plumbing, & HVAC (Qualifying) Appliances (Non-Qualifying)
Architect & Engineering Fees (Qualifying) Any Enlargement of Building (Non-Qualifying)
Other Requirements Summarized (State Historic Rehabilitation Tax Credit):
- The expense must be on a building (no site work, landscaping, work outside the building footprint).
- The qualified expenses must be more than $5,000 & paid by the owner of the building.
- Only property owners of the building 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 projects within your home may be combined to reach the minimum requirement.
- The application must be submitted BEFORE work begins.
- All work must meet the Secretary of the Interior's Standards for Rehabilitation.
- The project must be reviewed before the work starts to ensure the work meets The Standards.
- If ANY portion of the project work does NOT meet the Standards for Rehabilitation, no credits will be awarded for the entire project.
“Secretary of the Interior's Standards for Rehabilitation”?
The intent of the Standards is to assist the long-term preservation of a property's significance through the preservation of historic materials and features. Rehabilitation work must be determined to be consistent with the historic character of the structure. The Standards state that they are to be applied to specific rehabilitation projects in a reasonable manner, taking into consideration economic and technical feasibility. (www.nps.gov/tps/standards/rehabilitation.htm):