Finance Programs
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- Promoting Employment Across Kansas (PEAK) – This program offers qualified companies the ability to retain 95 percent of their payroll withholding tax for up to five to ten years. The award is dependent on the aggregate median wage of all jobs compared to the relevant county median wage.
- Industrial Revenue Bonds (IRBs) – Industrial Revenue Bonds are a popular method of financing up to 100 percent of a growing business’ land, building and equipment.
- Kansas Industrial Training (KIT) – Direct financial assistance with the training of net new jobs to Kansas. The program can be structured as pre-employment, classroom, on-the job or a combination of the three approaches. The award is dependent on number of jobs the company plans on creating in the first three years, and average wage of jobs compared against the county median wage.
- Kansas Industrial Retraining (KIR) – For restructuring companies whose employees are likely to be displaced to obsolete or inadequate job skills or knowledge. The program will provide assistance for retraining existing employees.
- Community Development Block Grant (CDBG) – The Small Cities Community Development Block Grant – Economic Development (CDBG-ED) program is a source of financing for companies that are expanding an existing facility or starting a new operation in the non-metropolitan areas of Kansas.Link: https://www.kansascommerce.gov/businesses/incentives/
- STAR Bonds – STAR bonds are a financing mechanism that allows a city’s portion of state sales tax from a designated district to be used to pay off the bonds. STAR bonds are generally used to finance redevelopment projects with a minimum $50 million capital investment and $50 million projected sales, or for a major commercial entertainment and tourism area that would be of regional or statewide importance.Link: https://www.kansascommerce.gov/program/community-programs/star-bonds/
Income Tax Incentives
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- High Performance Incentive Program (HPIP) – This program provides a 10 percent corporate income tax credit on the qualified capital investment of an eligible company that pays above average wages and has a strong commitment to skills development for their workers.Link: https://www.kansascommerce.gov/program/business-incentives-and-services/hpip/
- Machinery & Equipment Expensing Deduction – Eligible Kansas taxpayers are allowed to claim an expense
deduction for business machinery and equipment, placed into service in Kansas.
Property Tax Incentives
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- Machinery and Equipment Property Tax Exemption – Commercial and industrial machinery and equipment acquired by qualified purchase or lease or transferred into the state is exempt from state and local property tax.
- Property Tax Abatement – Cities or counties may exempt real property from ad valorem taxation. The tax abatement can include all or any portion of the appraised buildings, land and improvements.
- Inventory Property Tax Exemption – A property tax exemption exists for merchants and manufactures inventory. Inventory includes those items that:
Sales Tax Incentives
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- Sales Tax Exemptions available include:
- Labor services related to original construction.
- Remodeling costs, furnishings, furniture, machinery and equipment for qualified projects
- New machinery and equipment for manufacturing and distribution.
- This also includes pre- and post-production machinery and equipment, including raw material handling, waste storage, and water purification, as well as ancillary property such as gas pipes, electrical wiring and pollution control equipment
- Tangible personal property that becomes an ingredient or component part of a finished product
- Tangible personal property that is immediately consumed in the production process, including electric power, natural gas and water
- Incoming and outgoing interstate telephone or transmission services (WATTS)
- Real and personal property financed with an Industrial Revenue Bond
- Utilities Sales Tax Exemption – Electricity, gas, and water consumed to run machinery and equipment to produce, manufacture, process, mine, drill or refine tangible personal property is exempt from state and local sales tax
- Research Tax Credit – In order to encourage research and development activities within the state, taxpayers who invest in research and development are entitled to tax credits against Kansas income tax liability. Cannot be used if taxpayer elects Expensing Deduction.
- Day Care Facilities Tax Credit – Tax credits are offered against Kansas income tax liability for businesses providing child day care services to employees. These credits apply to taxpayers who pay for or provide child day care services for their employees or that provide facilities and necessary equipment for child day care services.Link: https://www.kansascommerce.gov/businesses/taxes/
Additional Incentives
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- NetWork Kansas – NetWork Kansas matching loan programs are designed to support private capital by providing matching funds to assist startups and existing businesses that are expanding. A variety of loan programs are offered based on geography, matching loan amounts, and project need.Link: https://www.networkkansas.com/capital
- Kansas Department of Health & Environment (KDHE) Brownfields Program – The Kansas Department of Health & Environment (KDHE) administers a State Brownfields Program that is funded through a federal Environmental Protection Agency grant. KDHE can provide Brownfields Targeted Assessments (BTA) to eligible applicants on projects that benefit community need or job creation. BTAs provide a means to evaluate potential environmental liabilities associated with a particular property that may complicate redevelopment or reuse objectives. The perception of contamination often keeps properties from being redeveloped. Once the “stigma” is gone, properties can be returned to productive use.Link: https://www.kdheks.gov/brownfields/
- Kansas Bioscience Authority (KBA) – Focused on the industry sectors where Kansas has outsized advantages — agribusiness, animal health and human health — KBA brings deep industry expertise and capital-raising experience to each opportunity. With plans to invest more than $100 million in the bioscience sector, the KBA looks to follow founding investors with its own investment in the early to mid-term growth phase of companies. KBA attracts co-investors who bring added value, while supporting entrepreneurs with its own management counsel as well as that of other experts.Link: https://www.kansascommerce.gov/industry/bioscience/
- Kansas Angel Tax Credits – Kansas income tax credits are available to individuals who provide seed-capital financing for emerging Kansas businesses engaged in development, implementation and commercialization of innovative technologies, products and services.Link: https://www.kansasangels.com/Angels
Historic Preservation Programs
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- Kansas Historic Rehabilitation Tax Credit – The Kansas State Tax Credit is equal to 25 percent of qualifying expenses incurred during a qualified project on a qualified building. Buildings must be qualified historic structures. Qualified buildings are those that have been listed on the National Register of Historic Places, the Register of Historic Kansas Places, or have been deemed contributors to a National or State Register Historic District. Projects that qualify and are approved by the National Park Service for the 20 percent Federal Tax Credit will also qualify for the Kansas State Tax Credit.Link: https://www.kshs.org/p/state-historic-rehabilitation-tax-credit/14666
- Historic Preservation Fund – The Kansas State Historic Preservation Office (SHPO) administers the Historic Preservation Fund (HPF) to finance local preservation activities that will contribute to planning for the preservation of the built environment and archeological resources. Up to 60 percent of the cost of eligible activities can be funded through this program. Through property identification and evaluation, communities may assess their historic properties and develop plans for their recognition and preservation.Link: https://www.kshs.org/p/historic-preservation-fund/14615
*Disclaimer: Every attempt has been made to provide current, accurate, and consistent data. There may be some differences due to sources, methodologies, or timing of data-assembly.
