Kansas offers a variety of business incentives to support economic growth, job creation, and innovation across various industries.  These incentives are designed to help businesses reduce costs, invest in infrastructure, and develop a skilled workforce.  Below are some of the key programs available in Kansas that businesses can leverage for expansion and investment.

Kansas High Performance Incentive Program (HPIP)

Overview

HPIP is a performance-based tax credit program that encourages businesses to invest in capital improvements and create high-wage, high-skill jobs in Kansas.  This program is aimed at businesses that demonstrate a significant impact on the local economy.

Eligibility

• Businesses must create at least 25 new full-time jobs or invest a minimum of $50,000 in capital improvements.

• The jobs must meet certain wage and benefit criteria, and the investment must result in the creation of sustainable, high-quality jobs.

Incentive Value

• Eligible businesses can receive a tax credit of up to 10% of the total qualifying capital investment.

• The program also offers income tax credits for new jobs created, which can be applied over a period of up to 10 years.

Application Process

Businesses must submit an application to the Kansas Department of Commerce (KDC), providing details of the planned investment and job creation.

Promoting Employment Across Kansas (PEAK)

Overview
The Promoting Employment Across Kansas (PEAK) program incentivizes businesses to create jobs in Kansas by allowing them to retain or receive refunds on up to 95% of payroll withholding taxes for eligible new positions.

Eligibility

• Job Creation: At least 10 new jobs in metro areas or 5 in non-metro areas within 2 years.

• Wages: Must meet or exceed the county median wage.

• Health Benefits: Employers must pay at least 50% of health insurance premiums for full-time employees.

• Approval: Businesses must apply and receive approval before creating jobs.

Incentive Value

• Up to 95% retention of payroll withholding taxes.

• Duration: Up to 7 years for standard projects and 10 years for high-impact projects.

Application Process

1. Consult with the Kansas Department of Commerce.

2. Submit the application with a $750 fee.

3. Upon approval, retain withholding taxes for qualified employees.

Kansas Investment Credit (KIC)

Overview

The KIC provides tax incentives for businesses that make significant investments in machinery, equipment, or facilities within Kansas.  This program aims to foster economic growth by encouraging capital investment.

Eligibility

• Businesses must invest in tangible personal property, including machinery, equipment, and property improvements.

• The investment must meet a minimum threshold of $50,000, and the business must be creating new jobs as a result.

Incentive Value

• The tax credit is up to 5% of the amount invested in qualifying property, such as machinery or equipment.

• The credit can be used to offset Kansas income tax liabilities for up to 5 years.

Application Process
Businesses must apply to the Kansas Department of Revenue (KDR) and provide supporting documentation of the investment made in qualifying property.

Kansas R&D Tax Credit

Overview

The Kansas Research and Development (R&D) Tax Credit incentivizes businesses to engage in research and development activities aimed at innovation and technological advancement.  The program encourages companies to create new products and processes that can improve competitiveness.

Eligibility

• Businesses must conduct qualifying R&D activities in Kansas, focusing on developing or improving products or processes.

• The R&D activities must meet specific criteria, such as being experimental or technological in nature.

Incentive Value

• The credit is equal to 6.5% of qualified R&D expenses incurred within the state of Kansas.

• The credit can be used against the business’s Kansas income tax liability.

Application Process

Businesses must apply through KDR and provide documentation of their R&D activities, including expenditures and the nature of the research.

Kansas Property Tax Exemption for New Business Facilities

Overview

The Property Tax Exemption for New Business Facilities program provides property tax relief to businesses that invest in new construction or expand existing facilities in Kansas.  This program is designed to encourage investment and job creation by reducing the financial burden of property taxes.

Eligibility

• Businesses must construct or expand facilities that will be used for business purposes in Kansas.

• The investment must lead to the creation of new jobs or the retention of existing positions.

Incentive Value

• The program offers a property tax exemption for up to 10 years on the increased value of new business property.

• The exemption applies to real property, machinery, and equipment used in the business.

Application Process

Businesses must submit an application to KDR, detailing the proposed investment and its impact on job creation.

Kansas Neighborhood Revitalization Act (NRA) Tax Credit

Overview

The NRA Tax Credit is a program designed to revitalize distressed neighborhoods and encourage business investment in those areas.  It provides property and income tax credits to businesses that invest in designated neighborhoods.

Eligibility

• Businesses must invest in properties located within a designated neighborhood revitalization area.

• Investments must meet specific criteria, such as improving residential or commercial properties or creating jobs.

Incentive Value

• The program offers property tax rebates or income tax credits based on the amount of investment made in the revitalization area.

• The rebate can be up to 95% of the increased property taxes resulting from the investment.

Application Process

Businesses must apply through KDC, demonstrating that their investment will support the goals of neighborhood revitalization.

Kansas Job Creation Program Fund (JCPF)

Overview

The JCPF offers financial assistance to businesses that create new, full-time jobs in the state.  The program is designed to attract and retain companies that will positively impact the Kansas economy by generating new employment opportunities.

Eligibility

• Businesses must create at least 10 new full-time jobs.

• The business must meet wage and benefit criteria set by KDC.

Incentive Value

• The program provides cash grants of up to $1,500 per job created.

• The total value of the grant is determined based on the number of jobs created and the business’s wage structure.

Application Process

To apply, businesses must submit an application to KDC, providing information about job creation and wage standards.

Kansas Renewable Energy Tax Credit

Overview

The Kansas Renewable Energy Tax Credit is designed to promote the development and adoption of renewable energy projects.  It provides financial incentives for businesses investing in renewable energy technologies, including wind, solar, and biomass.

Eligibility

• Businesses must install renewable energy systems or implement energy-efficient improvements to their operations.

• The systems must be used for commercial purposes and located in Kansas.

Incentive Value

• The tax credit provides up to 10% of the cost of qualifying renewable energy projects, with a cap of $50,000 per business.

• The credit can be used to offset Kansas income tax liabilities.

Application Process

Businesses must apply to KDR, providing documentation of the renewable energy installation and associated costs.

Kansas Workforce Development Training Program

Overview

The Kansas Workforce Development Training Program supports businesses by providing funding for employee training.  This program helps businesses upgrade the skills of their workforce and prepare employees for new technologies and industry demands.

Eligibility

• Businesses must be located in Kansas and create new jobs or provide training to existing employees.

• Training must focus on improving employee skills in areas such as technology, manufacturing, and health care.

Incentive Value

• The program offers financial assistance to cover up to 50% of training costs, including tuition, training materials, and certifications.

• The maximum funding available is $1,000 per employee.

Application Process

Businesses must apply to KDC, detailing the training needs of their employees and the training programs they plan to implement.