TAX CREDITS
Promoting Employment Across Kansas (PEAK): Provides qualified companies bringing jobs to Kansas or expanding operations in the state the ability to retain 95% of the payroll withholding tax of the new jobs over a period of five or more years. Companies must create 10+ new jobs within two years in metropolitan areas or five new jobs within two years in all other counties of the state. High-impact projects that create 100 new jobs within five years can retain 95% of payroll withholding tax for seven to ten years
High Performance Incentive Program: Companies that operate an eligible business, pay above-average wages and invest in employee training may be eligible to receive a credit of up to 10% of capital investment against their Kansas Corporate Income Tax. Unused credits may be carried forward for up to 16 years.
Research & Development Tax Credit: Kansas offers an 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. Twenty-five percent of the allowable annual credit may be claimed in any one year.
TRAINING PROGRAMS
Kansas Industrial Training (KIT): Provides financial assistance to help offset a company’s training costs, paying a negotiated portion of the costs.
LOW INTEREST FINANCING
Wind and Solar Bond Financing: The state has the authority to issue up to $5 million in bond financing for eligible wind and solar energy manufacturers locating in Kansas. The bonds are paid off from the payroll withholding tax of the new jobs. To qualify, a project must create at least 200 new jobs within five years, pay at least a $32,500 average salary and generate a minimum capital investment of $30 million.
LOCAL INCENTIVES
Cities or counties in Kansas have the authority to exempt real property from ad valorem taxation. A total or partial tax abatement may be in effect for up to 10 years after the calendar year in which the business commences its operations.
TAX EXEMPTIONS
The High Performance Incentive Program offer 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.
Personal property purchased or brought into the state after July 1, 2006 is exempt from property taxes.
Owners of LLCs, LLPs, Subchapter-S corporations and partnerships pay no income tax on non-wage business income.
