Deferred maintenance
In an effort to address the deferred maintenance issues at the state’s institutions of higher education, the 2007 Kansas Legislature passed House Bill 2237, the Kansas Educational Institution Long-Term Maintenance Program. For K-State and other institutions in Kansas, this means that there is now a state tax incentive, in addition to a general interest in maintaining our educational facilities, for donors to consider when providing private gifts in support of K-State’s deferred maintenance needs.
Tax credit is available for contributions made to benefit urgent deferred maintenance needs for several buildings on central campus, plus improvements needed at K-State at Salina and at three agricultural research centers.
Typically, these buildings need new heating, air conditioning and ventilation systems, electrical, emergency systems, plumbing, windows, doors and elevators. They may require removal of asbestos and upgrades may be needed to assure ADA compliance. See a building-by-building description of needs.
Learn more
Building-by-building description of needs
How the program works
Tax credits available under the Kansas Educational Institution Long-Term Maintenance Program conclude after calendar year 2012. Specific rules governing the program note that:
• The tax credit is available to individuals, nonprofit organizations and businesses paying Kansas individual and corporate income tax, insurance premium tax and bank privilege tax.
• Qualified charitable gifts for deferred maintenance are eligible to receive a tax credit for 50 percent of the contribution amount.
• If the credit afforded to a taxpayer is in excess of their income tax liability, the remaining credit may be carried forward for up to three additional years and is therefore nonrefundable.
• Taxpayers taking advantage of the credit must file the appropriate Kansas tax return forms electronically.
For K-State, the maximum tax credit available in 2009 is approximately $3.2 million and in years 2010–2012, the amount of tax credits available to donors in each year will be more than $4.3 million. During the life of this program, the Kansas Legislature has earmarked nearly $17.9 million in tax credits to assist K-State in addressing its long-term building maintenance needs.
The tax credit program allows contributions toward deferred maintenance to provide a greater tax benefit than a traditional contribution.
How to give
Eligible gifts must be made directly to the KSU Foundation in the suggested minimum amount of $5,000. They may be given as cash, securities or personal or real property that can be converted to cash. The rules require that gifts must be received or postmarked by Dec. 31 of the year in which the donor seeks the tax credit.
For more information, please contact:
Karen Dunn
800-432-1578 or 785-532-7597
E-mail: karend@found.ksu.edu