Disabled Access Credit
Income and Privilege Taxpayers - Effective for all taxable years beginning after Dec. 31, 1977.
For tax year 2013, the business credit shall only be available to privilege taxpayers and corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities. For tax year 2014, the credit becomes available once again to all income and privilege taxpayers.
The disabled access credit is available to individual and business taxpayers who make their property accessible to the disabled.
Qualifications
The property must be:
- a personal residence located in Kansas; or,
- an existing building, facility, or equipment located in Kansas and used in a trade or business or held for the production of income.
Specifications for making a building or facility accessible and usable by the disabled must be in conformity with Title I and Title III of the Americans with Disabilities Act of 1990, 42 USCA 12101 et seq. and 28 CFR Part 36 and 29 CFR 1630 et seq.
Qualified Expenditures
Expenditures incurred to remove an existing architectural barrier qualify for the disabled access credit. Effective July 1, 1997, the construction of a small barrier free living unit attached to the principal residence also qualifies as an eligible expenditure.
Expenditures incurred to modify or adjust an existing facility or piece of equipment for the purpose of employing individuals with a disability qualifies for the disabled access credit.
Credit Amount
For tax years 2021 and all tax years thereafter, individual taxpayers shall be allowed a credit based on, a certain percentage of expenditures, and adjusted gross income or a maximum credit, whichever is less, not to exceed the taxpayer’s income tax liability. The maximum credit changes each year is based on the cost-of-living adjustment:
Tax Year 2021 = $15,000
Tax Year 2022 = $15,400
Tax Year 2023 = $16,050
Tax Year 2024 = $17,400
For tax years 2021 and all tax years thereafter, an individual with a tax liability of less than a certain amount, is allowed a refund in the first year the credit is claimed of 25 percent of the amount that exceeds the liability. In the second year the refund is 33 percent of the amount carried over from the first year which exceeds the liability. In the third year, the refund is 50 percent of the amount carried over from the second year which exceeds the liability. In the fourth year, any remaining credit exceeding the liability is refunded. This amount changes each year based on a cost-of-living adjustment:
Tax Year 2021 = $3,750
Tax Year 2022 = $3,850
Tax Year 2023 = $4,000
Tax Year 2024 = $4,350
An individual with a tax liability of this amount or more may carry forward any amount of credit which exceeds the income tax liability for a period of four years.
For a business taxpayer, the credit is 50 percent of the actual expenditures or $10,000 whichever is less, not to exceed the taxpayer’s income or privilege tax liability.
A business may carry forward any amount of credit which exceeds the income or privilege tax liability for a period of four years.
Procedures to Claim the Credit
You may download Schedule K-37 to claim the disabled access credit. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-37. 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.