Economic Development Links

State Incentives Tax Exemptions

Tax Exemptions for Industrial Revenue Bonds

Businesses using Industrial Revenue Bonds (IRB's) as a financing mechanism may the following tax exemption:

More detailed information on Industrial Revenue Bonds can be found under Kansas Business Finance.

Inventory Tax Exemption

All merchants' and manufacturers' inventories have been exempt from property taxes by constitutional amendment since 1989 (K.S.A. 79-201m).

Sales Tax Exemption

Electricity, gas, and water consumed during manufacturing are exempt from the Kansas sales tax (K.S.A. 79-3603). Sales tax paid on the purchase of machinery, equipment, and certain other tangible property may be exempted if the applicant's business qualifies for Job and Investment Tax Credits and is located within a state designated Enterprise Zone (K.S.A. 79-3606). Companies that qualify for the High Performance Business Incentive Program are eligible to receive this exemption without being tied to the job creation requirement. This exemption extends to manufacturing machinery and equipment as well as to any quality control and pollution control equipment installed. All sales of manufacturing machinery and equipment are exempt from sales taxes (K.S.A. 79-3606). This exemption extends to machinery and equipment purchased primarily for use in the assembly, processing, finishing, storing, warehousing, or distribution of tangible personal property intended for resale. Businesses may take advantage of several other items exempt from sales tax (K.S.A. 79-3606).


Rebecca Bouska, Deputy City Administrator