The Kansas Department of Commerce administers various incentive programs designed to encourage investment and job creation in the state. The Overland Park Chamber Economic Development Council can assist in coordinating any of these programs in conjunction with the Kansas Department of Commerce.
Promoting Employment Across Kansas (PEAK) – The program offers qualified companies 95% retention of payroll tax withholding for five to seven years. Companies in metropolitan areas must create at least 10 jobs and pay wages that meet or exceed county median wage or NAICS average for their industry.
- Kansas Capital Multiplier Loan Fund – Businesses can apply for matching loans up to 9% of the private capital invested. Minimum loan is $25,000, maximum loan is $500,000.
- Kansas Capital Multiplier Venture Fund – Businesses can apply for matching equity up to 9% of 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 is $25,000, maximum equity investment is $250,000.
Kansas Bioscience Authority (KBA) – The KBA provides direct financing programs and other resources that are used to recruit new bioscience companies and scholars, fund equipment and lab space for research and facilitate the commercialization of bioscience discoveries.
Income Tax Incentives
High Performance Incentive Program (HPIP) – Qualified capital investment may receive a 10% corporate income tax credit. Companies must operate an eligible business, pay above-average wages and invest in employee training. Minimum investment for urban counties is $1 million. Credits must be used in a consecutive 16-year period.
Research Tax Credit – Companies may receive income tax credit equal to 6.5% of their investment in research and development above an expenditure of the previous three-year period. Twenty-five percent of the allowable annual credit may be claimed in any one year.
Work Opportunity Tax Credit – This program is currently on a hiatus, effective January 1, 2014
Designed to encourage private employers to hire within one of the targeted groups of job candidates who face significant barriers to employment (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), the tax credit reduces the employer’s federal income tax liability by as much as $2,400 per qualified new worker in the first year of employment.
Workforce Development Programs
Kansas Industrial Training (KIT) – KIT provides direct financial assistance for workforce training programs for companies creating new jobs, including pre-employment and on-the-job training.
Kansas Industrial Retraining (KIR) – KIR provides direct financial assistance for Kansas companies that are retraining their existing workforce or restructuring their workforce on new technology or production activities.
Property Tax Incentives
Machinery & Equipment Property Tax Exemption – Commercial and industrial machinery and equipment acquired by qualified purchase or lease or transferred into the state are exempt from state and local property tax. The exemption pertains to the expansion of an existing facility or establishment of a new facility.
Inventory Tax Exemption – All merchant and manufacturers’ inventories are exempt from property taxes.
Other Tax Incentives and Business Initiatives
- Machinery & Equipment Expensing Deduction – This one-time deduction allows Kansas taxpayers to claim an expense deduction for business machinery and equipment placed in service in Kansas during the tax year.
- No local income taxes
- No franchise tax
- Right-to-Work state