The State of Kansas offers significant and comprehensive business incentives to encourage the construction and expansion of Kansas businesses and industries.
The Job Expansion and Investment Tax Credit Program offers corporate income tax credits based on job creation and capital investment. The Kansas Enterprise Zone (E-Zone) program offers tax credits based on job creation and capital investment, as well as a sales tax exemption on facility construction and equipment purchases.
A third program, the High Performance Incentive Program (HPIP), also offers business incentives to companies that pay above average wages for their industry, make capital investments in their operations, and invest in workforce training. HPIP offers state income tax credits, sales tax exemption, workforce training credits, and matching funds for consulting fees.
To be eligible, a firm must either pay above-average wages for their industry, or else 1 1/2 times the statewide average wage exclusive of owner compensation.
The Kansas Tax Reduction and Reform Act of 1998 provides an annual tax credit against the income tax, privilege tax, and insurance company premiums tax.
In order to stimulate increased research and development activity by Kansas businesses, the State offers an income tax credit equal to 6.5 percent of a company's investment in research and development above an average expenditure of the previous three-year period.
This tax credit was created by the 2002 Kansas Legislature to encourage investments in Kansas-based "capital formation companies," which provide venture capital to new Kansas businesses.
Tax credits are offered against Kansas income tax liability for businesses providing child day care services to employees.
Rebecca Bouska, Deputy City Administrator