SPOTLIGHT PROGRAMS

Promoting Employment Across Kansas (PEAK): This program allows new and expanding businesses to retain 95% of their payroll withholding taxes paid for each newly created job. Companies must create at least 10 new jobs within two years in metropolitan areas or 5 new jobs within two years in all other counties. Metro and nonmetropolitan projects are eligible for up to seven years of savings. High-impact projects that create 100 new jobs within two years can retain 95% of payroll withholding tax for ten years.

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‍High-Performance Incentive Program (HPIP): Companies that operate an eligible business, pay above-average wages, and invest in employee training or participate in state-sponsored training may receive a corporate income tax credit of up to 10% of capital investment.  Unused credits may be carried forward for up to 16 years. The minimum investment is $50,000 in non-metro counties and $1 million in metro counties.

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TAX CREDITS

Research & Development Tax Credit: Kansas offers an income tax credit equal to 10% of the difference between the company’s current qualified R&D expenditures and the average of the annual qualified research expenditures for the current year and the two previous years.  No more than 25% of the allowable annual credit may be claimed in any given year. This credit may only be applied to offset corporate income tax.

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‍Alternative Fuel Tax Credit: Kansas administered credits for alternative fueling stations and alternative fueled vehicles. The amount of the credit is based on the fuel used and whether the credit is being claimed for a vehicle or station. Unused credits can be carried forward for up to five years.

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TAX EXEMPTIONS

High-Performance Incentive Program (Sales Tax Exemption): Offers a 100% sales tax exemption on the purchase of labor and materials to construct or remodel a facility, as well as on the machinery, equipment, furniture, and fixtures used in the facility.  Sales tax exemptions may also be obtained through the use of Industrial Revenue Bonds.

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‍Personal Property Tax Exemption: Kansas law exempts personal property tax on commercial and industrial machinery and equipment.

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‍Sales Tax Exemptions: Kansas offers a variety of sales tax exemptions by state statue, including exemptions on utilities used during manufacturing processes, labor services in original construction, and various tangible personal property assets.

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DIRECT FINANCIAL ASSISTANCE

Attracting Powerful Economic Expansion (APEX): Incentive program available to mega-projects within targeted industries that invest $1 billion or more in expansion or relocation to Kansas. Benefits include refundable investment tax credits up to 15% of qualifying capital investment, partial rebate of payroll up to 10% not to exceed 10 years, training reimbursement up to 50% of qualifying expenses not to exceed $5 million annually, relocation reimbursement up to 50% for non-Kansas residents limited to $1 million annually, and 100% sales tax exemption up front for materials in facility construction. The program currently has a sunset date of December 31^st, 2023.

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JOB TRAINING

Kansas Industrial Training Program (KIT) and Kansas Industrial Retraining (KIR) Program: Both programs provide financial assistance to help offset a company’s training costs, paying a negotiated portion of the costs. The programs can be structured as pre-employment, classroom, on-the job or a combination of the three approaches.  The average wage of the trainees must be equal to or higher than the median wage of the county in which the project is located.

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‍Workforce Aligned with Industry Demand (AID): The Kansas Department of Commerce and the Kansas Board of Regents can partner with Kansas companies to create customized training, with the training process led by the employer and allowing educational institutions to offer training at a much lower cost.‍

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Workforce Development Assistance: Kansas has workforce centers across the state that can provide assist companies in workforce development at little to no cost to the company.

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LOCAL INCENTIVES

Industrial Revenue Bonds: A local Chapter 349 Industrial Development Corporation can issue either taxable or tax-exempt bond financing of fixed assets for eligible businesses; however, no property tax abatement is available.

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Last Updated: July 2023