Each community offers economic development rates and incentives.
High Performance Incentive Program (HPIP)
The High Performance Incentive Program provides tax incentives to employers that pay above-average wages and have a strong commitment to skills development for their workers. This program recognizes the need for Kansas companies to remain competitive and encourages capital investment in facilities, technology and continued employee training and education. A substantial investment tax credit for new capital investment in Kansas and a related sales tax exemption are the primary benefits of this program.
HPIP offers employers four potential benefits:
- A 10 percent income tax credit for eligible capital investment that exceeds $50,000 ($1M in five metro counties) at a company’s facility, with a carry-forward that can be used in any of the next 16 years in which the qualified facility re-qualifies for HPIP.
- A sales tax exemption to use in conjunction with the company’s eligible capital investment at its qualified facility.
- A training tax credit of up to $50,000.
- Priority consideration for access to other business assistance programs.
Promoting Employment Across Kansas (PEAK)
PEAK requires the qualified company to commit to creating five new jobs in non-metropolitan counties or ten (10) new jobs in the metropolitan counties of Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick over a two-year period. The qualified company must also pay wages to the PEAK jobs/employees, that when aggregated, meet or exceed the county median wage or North American Industry Classification System (NAICS) average wage for their industry. Qualified applicants include for-profit companies in eligible NAICS codes and not-for-profit headquarters facilities. Such companies must make available to its full-time employees “adequate” health insurance coverage (see Definitions) and be paying at least 50% of the premium.
Existing Kansas businesses that are expanding and creating new jobs also are eligible to receive benefits if approved by the Kansas Secretary of Commerce.
Applications are accepted throughout the year and must be received prior to hiring PEAK jobs/ employees in Kansas.
Property Tax Abatement
Businesses that purchase or expand property for the purpose of:
- manufacturing articles of commerce;
- conducting research and development; or
- storing goods or commodities which are sold or traded in interstate commerce,
may qualify for property tax abatement with proper approval of the city or county governing body, and with final approval from the State Board of Tax Appeals.
Certain uses financed by Industrial Development Bonds may also qualify for property tax abatements if approved by the state prior to issuance.
Trade Show Assistance
The Kansas International Trade Show Assistance Program (KITSAP) assists Kansas producers who want to exhibit at international trade shows. The program can help reimburse successful applicants for up to half of their direct exhibition-related expenses, not to exceed $3,500 per international show.
State sponsored technical programs are available through several organizations including the Kansas Technology Enterprise Corporation, Mid-America Manufacturing Technology Center and the Small Business Development Centers. These organizations offer a variety of manufacturing and business management assistance.
Visit the Kansas Department of Commerce website for more information and additional incentive programs.