State OKs tax credits for hospital

Donors to the St. Luke Hospital renovation project have an added incentive.

Kansas Department of Commerce has awarded $250,000 to St. Luke Hospital Foundation in tax credits for expansion of the physical therapy facilities and associated services.

“This will be a huge benefit for us,” Chief Executive Officer Jeremy Armstrong said. “We really hoped we could include this as part of the project to help financing.”

The hospital is planning a $6 million renovation and expansion project at its current site, expanding the physical therapy department and operating room, updating the main entrance to the hospital, and changing some inpatient rooms to accommodate outpatient procedures.

The tax credits are allocated to the foundation at an annual rate of 70 percent. For example, qualified donors who give $1,000 to the hospital foundation will receive a $700 tax credit against their Kansas income tax liability.

In addition, donors would receive federal tax benefits if they itemize, which would provide another decrease in their tax liability.

The Marion hospital was one of 21 non-profit organizations in the state to be awarded a total of $4.13 million in community service tax credits.

A public forum will be at 7 p.m. July 15 in the USD 408 Performing Arts Center, Marion. Armstrong said the event will provide information to those who haven’t had an opportunity to attend a luncheon.

Renovation of the hospital will begin sometime in July, Armstrong said. General contractor Hutton Construction will begin moving equipment and erecting a construction fence at the site July 21. It will take about 18 months for the project to be completed.

 

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