Affordable Housing Credit
Income, Privilege and Premium taxpayers – Effective for all taxable years commencing after December 31, 2022.
A tax credit shall be allowed for qualified low-income housing projects.
Qualifications
The KHRC shall issue an allocation certificate to the owner of a qualified development to which a credit has been allocated. The Kansas Housing Resource Corporation (KHRC) shall issue an allocation certificate to the qualified development simultaneously with issuance of federal form 8609 with respects to the federal tax credits. For information on the certification process, email housingdevelopment@kshousingcorp.org.
Credit Amount
For taxable years commencing on or after December 31, 2022, for a qualified development located in Kansas, as determined by the Kansas Housing Resources corporation (KHRC) each year of the credit in an amount equal to the federal tax credit allocated or allowed by KHRC to such qualified development. There shall be no reduction in the credit allowable in the first year of the credit period due to the calculation in section 42(f)(2) of the federal internal revenue code.
Any unused credit may be carried forward as a credit against subsequent year’s tax liability up to 11 tax years following the tax year in which the allocation was made and shall be applied first to the earliest years possible. Any amount of the credit that is not used shall not be refunded to the taxpayer.
Definitions
Qualified Development means a "qualified low-income housing project," as that term is defined in section 42 of the federal internal revenue code that is located in Kansas and is determined by the KHRC to be eligible for a federal tax credit whether or not a federal tax credit is allocated with respect to such qualified development.
Qualified Taxpayer means an individual, a person, firm, corporation, or other entity that owns an interest, direct or indirect, in a qualified development and is subject to the taxes imposed by the Kansas income tax act, the privilege taxes imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premium taxes imposed pursuant to K.S.A. 40-252, and amendments thereto.
Procedures to Claim the Credit
You may download Schedule K-25 to claim the Affordable Housing Credit. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voicemail system at 785-296-4937 to request Schedule K-25. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.