- The High Performance Incentive Program (HPIP) allows for the transfer or sale of tax credits to another entity or individual effective July 1, 2021. For projects placed into service on and after January 1, 2021 a taxpayer may transfer up to 50% of the tax credit allowed. The taxpayer may make a transfer to one or more transferees, but the total of all transfers shall not exceed 50% of the taxpayer’s tax credit.
- Kansas’ Promoting Employment Across Kansas Act is a discretionary tax-credit program up to ten years, the company may retain or be refunded 95% of the entity’s state withholding tax for PEAK-eligible employees if they create at least ten jobs in metropolitan counties or five in non-metropolitan counties within 2 years. PEAK requires with certain health care benefits to be paid by employer.
- Kansas Business and Job Development Credit provides a tax credit equal to $100 for each qualified employee or $100 for each $100,000 in qualified investment limited to 50% of the tax on the qualified business facility income tax based upon the development of jobs and a capital investment.
- Kansas law exempts the property tax on commercial and industrial machinery and equipment purchased or transferred into Kansas after June 30, 2006. The personal property tax exemption continues each year under the law. Personal property exemption can cover such items as: computers, desks & chairs, copiers, fax machines, business machinery, equipment used in manufacturing operations, and equipment used in warehousing.
- Kansas awards grants to cities or counties to provide gap-financing for private businesses which create or retain permanent jobs, some repayment is required for all economic development categories, grants are made to cities and counties which then, in turn, loan funds to developing businesses, repaid funds are returned to the state revolving loan fund and may be used for infrastructure projects on a similar loan/grant basis, funding is capped at $35,000 per job created or retained with a maximum of $750,000 and a requirement for matching funds.
- Industrial revenue bonds (IRBs) are issued by cities and counties to provide funds for credit-worthy companies to purchase land, pay the cost to construct and equip new facilities, or to purchase, remodel or expand existing facilities. IRBs allow for fixed-rate financing for the life of the bond for the project. The authority to approve the issuance comes from the governing body where the land site is located. Use of industrial revenue bonds will allow the construction of real property to be eligible for property tax abatement in Kansas, which is given by the local governing body. Kansas law allows for a maximum ten year real property tax abatement commencing the year after the bonds are issued. Another benefit of IRBs is a sales tax exemption. Statute K.S.A. 79-3606 exempts the cost of building materials and labor, as well as fixed items of machinery and equipment, from state and local sales taxes when IRBs are used.
- Kansas Tax Increment Financing uses the increases in real estate tax revenues and local sales tax revenues to retire the bonds sold to finance eligible redevelopment project costs or to reimburse the developer on a pay-as-you-go basis, focuses on non-retail projects, monies raised through TIF may be used for eligible redevelopment project costs approved by cities such as for site preparation, infrastructure, parking, and land acquisition within the TIF district.
