High Performance Incentive Program (HPIP): Companies that operate an eligible business, pay above-average wages and invest in employee training or participate in state sponsored training may receive a corporate income tax credit of up to 10% of capital investment. 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 the difference between the company’s current qualified R&D expenditures and the average of the annual qualified research expenditures for the current year and the two previous years. No more than 25% of the allowable annual credit may be claimed in any given year.
High Performance Incentive Program (Sales Tax Exemption): Offers 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.
Promoting Employment Across Kansas (PEAK): This program allows new and expanding businesses to retain 95% of their payroll withholding taxes paid for each newly created job. Companies need to create at least 10 new jobs within two years in metropolitan areas or 5 new jobs within two years in all other counties. High-impact projects that create 100 new jobs within two years can retain 95% of payroll withholding tax for seven to ten years.
Kansas Industrial Training Program (KIT) and Kansas Industrial Retraining (KIR) Program: Both programs provide financial assistance to help offset a company’s training costs, paying a negotiated portion of the costs. The programs can be structured as pre-employment, classroom, on-the job or a combination of the three approaches. The average wage of the trainees must be equal to or higher than the median wage of the county in which the project is located.
Industrial Revenue Bonds: A local Chapter 349 Industrial Development Corporation can issue either taxable or tax-exempt bond financing of fixed assets for eligible businesses; however, no property tax abatement is available.