State of Kansas Incentives

The Kansas Department of Commerce administers various incentive programs designed to encourage investment and job creation in the state.  Many of the programs can be used together to provide financial benefits to companies across all industries and of of many sizes.  The Overland Park EDC can help assist and coordinate any of these programs in conjuncture with the Kansas Department of Commerce.

Finance Programs

• Promoting Employment Across Kansas (PEAK) - Offers qualifed companies the ability to retain 95% of their payroll witholding tax for up to five to seven years.  Available to new and relocated out-of-state operations and will be available for existing Kansas business in 2012.  Companies in metropolitan areas will need to create at least 10 jobs within two years of relocation and pay wages that meet or exceed the county median wage or NAICS average for their industry.  High-impact projects that create 100 new jobs within two years can retain 95% of payroll witholding tax for up to seven to 10 years, dependent on the annual median or average wage and how that compares to the county wage. 
• Kansas Economic Opportunity Initiatives Fund (KEOIF) - Funds are provided to address opportunities or emergencies that may have substantial impact on the Kansas economy.  The performance-based financial assistance is used to secure economic benefits and/or avoid or remedy economic losses.  Eligible projects include major expansion of existing commercial enterprise, potential location of a major employer, maching federal or private sector grant, departure or reduction of a major employer or the closing of a major federal or state institution. 
• State Small Business Credit Initiative - Provide matching funds through a partner network to eligible businesses and communities in Kansas
• Kansas Capital Multiplier Loan Fund - Businesses can apply for matching loans up to 9% of the private capital invested.  Minimum loan is $75,000 and maximum loan is $750,000.
• Kansas Capital Multiplier Venture Fund - Businesses can apply for matching equity up to 9% of the private equity invested Eligible businesses include technology and bioscience companies working with a state entrepreneurial center, University Center of Excellence, and/or the Kansas Bioscience Authority (KBA).  Minimum equity investment contribution is $25,000 and maximum is $250,000.
• Wind and Solar Bond Financing - Allows for up to $5 million in bond financing per project for eligible wind and solar manufacturers.  Bonds are paid off by the payroll witholding taxes from the new jobs.  Projects must create at least 200 new jobs within five years and pay at least $32,500 average salary and generate a minimum capital investment of $30 million.
• Community Development Block Grant (CDBG) - Can be used to acquire land or buildings, construct or renovate facilities, purchase machinery and equipment or for working capital.  Companies can apply for up to $35,000 per job created with a maximum of $750,000.  At least 51% of the jobs created must be held by individuals who meet the low- to moderate- income guidelines.
• Private Activity Bonds - Federally tax-exempt bonds which include exempt facility bonds, qualified mortgage bonds, qualified veterans' mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, qualified 501(c)(3) bonds
• Partnership Fund - Low-interest state funds to cities and counties for infrastructure improvements that support Kansas basic enterprises such as manufacturing and distribution. 
• Kansas Bioscience Authority (KBA) - Direct financing programs and other resources that can be used to recruit new bioscience companies and world-class scholars, fund equipment and lab space for research and facilitate the commercializations of bioscience discoveries. 

Workforce Development Programs

• Investment in Major Projects & Comprehensive Training (IMPACT) - Tax-exempt, public purpose bonds that respond to the training and capital requirements of major business and locations to the state.  At times this can be used for job retention projects.  Projects that are eligible usually create 100 new jobs at higher-than-average wage.  Can also be used for job retention projects with at least 250 jobs in metropolitan counties.
• State of Kansas Investment in Lifelong Learning (SKILL) - Funds may be used to pay for expenses related to training a new and sometimes existing workforce.
• Major Project Investment (MPI) - Funds may be used for other expenses such as purchase or relocation of equipment, labor recruitment or building costs.
• Kansas Industrial Training (KIT) - Gives direct financial assistance to pay for workforce training programs for companies creating new jobs.  This can include pre-employment training and on-the-job training.
• Kansas Industrial Retraining (KIR) - Gives direct financial assistance to pay for retraining of Kansas company's existing workforce on new technology or production activities.  Eligible companies include basic enterprises that are restructuring operations through incorporation of new technology, diversification of production or the development and implementation of new production activities.

Income Tax Incentives

• High Performance Incentive Program (HPIP) - Provides a 10% corporate income tax credit on the qualified capital investment of an eligible company.  Awarded to companies that operate an eligible business, pay above-average wages and invest in employee training.  The credits may be used to reduce a company's corporate income tax liability in a given year.  Credits must be used in a consecutive 16-year period and the minimum investment for urban counties is $1 million.  There is also sales tax exemption that can be used in conjunction with its capital investment and a training tax credit of up to $50,000.
• Research Tax Credit - Income tax credit equal to 6.5% of a company's investment in research and development above an expenditure of the previous three-year period.  25% of the allowable annual credit may be claimed in any one year.
• Energy Tax Credits
• Traditional Energy
• Crude Oil or Natural Gas Pipeline
• Refinery
•  Renewable Energy
• Alternative-Fuel Fueling Station
• Alternative-Fueled Motor Vehical
• Renewable Electric Cogeneration Facility
• Storage and Blending Equipment
• Work Opportunity Tax Credit - Encourages private employers to hire within one of the several targeted groups of job candidates who traditionally face significant barriers to employment, reducing employer's federal income tax liability by as much as $2,400 per qualified new worker in the first year of employment.  Targeted candidates include cash assistance recipients, veterans receiving food stamps, disabled veterans, 18-39 year olds receiving food stamps, vocational rehabilitation referrals, ex-felons, SSI recipients, Ticket-to-Work holders.

Property Tax Incentives